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‘Unusual demand’ reason for cash crunch, says govt

Prime News, National (New Delhi), April 17:- Amidst reports of a cash crunch and empty ATMs, Finance Minister Arun Jaitley on Tuesday sought to assuage fears, saying “there is more than the adequate currency in circulation”, even as the government blamed “unusual demand” for shortages in some areas.

“Have reviewed the currency situation in the country. Overall there is more than the adequate currency in circulation and also available with the banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly,” Jaitley tweeted.

“There is no cash crunch in the country. There is around Rs 18 lakh crore currency supply now, which is close to the circulation during the demonetisation period. We keep Rs 2.5-3 lakh crore more currency in stock for excess demand,” said S.C Garg, Economic Affairs Secretary.

He said there was unusually high demand for currency in the last couple of months. As opposed to an average demand of about Rs 20,000 crore a month, “in the first 13 days of April itself there was a demand of Rs 45,000 crore”, he said.

“In the last few days, we have pumped cash into the system to meet the demand. We still have a reserve of Rs 1.75 lakh crore.”

Garg attributed this sudden cash demand to localised phenomenon. (MR, Inputs: Agencies).

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