Concrete action is required to augment the supply of bank notes across the country and not mere statements from the Reserve Bank of India and the Finance Ministry assuring the public about adequate supply, said the All India Bank Employees’ Association (AIBEA).

“Everyone knows that the government is trying to push its agenda of digital banking instead of cash banking. Hence there is a doubt whether less currency notes are being printed so that people will be forced to resort to digital banking,” said CH Venkatachalam, General Secretary of the Association.

If timely and immediate action is not taken to improve supply of notes, the AIBEA, in a statement, said it will be compelled to ventilate the anger and agony of the banking public through agitations.

Currency demand

AIBEA statement comes in the backdrop of reports in the last few days of cash shortages and some ATMs running dry of cash or becoming non-functional in some parts - Andhra Pradesh, Telangana, Karnataka, MP and Bihar - of the country. Experts Industry insiders said the cash crunch may have been triggered by the advent of the marriage and procurement season, and the uneven distribution of currency by the RBI across States. Others blamed the conversion of Rs 2,000 cash notes in ATMs to Rs 200 ones.

There has been unusual spurt in currency demand in the country in last three months. In the current month, in the first 13 days itself, the currency supply increased by Rs.45000 crores. This unusual spurt in demand is seen more in some parts of the country like Andhra Pradesh, Telangana, Karnataka, MP and Bihar.

“The Government of India with the Reserve Bank of India have taken all steps to meet this unusual demand. We had adequate reserves of currency notes which have been used to meet fully the extraordinary demand generated so far. We continue to have in stock adequate currency notes of all denominations, including of Rs.500, 200 and Rs.100 to meet any demand,” the finance ministry said in a statement on Tuesday.

Referring to RBI’s assurance of adequate printing of currency notes, Venkatachalam questions, “Then where have the currency notes gone. Should they not investigate? Should they not ensure that banks have enough cash to meet the requirements of customers….In issue after issue, the RBI is found wanting?”

“While the government’s decision on demonetisation itself is under question, the effect of which our country is still facing, the inadequate supply of currency notes by RBI has been a problem ever since.”

Because public is unable to withdraw money from their account as they desire and many ATMs are showing ‘no cash’ signboards in many states, Venkatachalam said Bank employees are facing the wrath and anger of customers. “Customers are shouting and abusing the bank staff for no fault on their part,” he added.

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