After the reports of cash crunch in the country created panic, the Reserve Bank of India (RBI) moved into damage control mode and clarified that there is no cash shortage in the country and the printing of currency has been ramped up in all four note presses. “The shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway. RBI is closely monitoring both these aspects,” the central bank said in a statement.
“It is clarified at the outset that there is sufficient cash in the RBI vaults and currency chests,” the RBI said. Earlier in the day, DEA secretary Subhash Chandra Garg said that the RBI will increase five-fold the printing of Rs 500 notes to deal with cash shortages in certain parts of the country, fuelled partly by hoarding of high denomination currency.
Source: Financial Express