Cash Crunch Hits India Again
Yet again, people have witnessed another havoc in various states like Uttar Pradesh, Telangana, Delhi, Gujarat, Chhattisgarh, Bihar and Madhya Pradesh as the ATMS go dry for weeks. The same happened last time during demonetization where people had to stand for hours under the scorching sun to take out money from the ATMs but this time, ATMs are running cashless.
The government has attributed the cash crunch to an “unusual spurt in currency demand”, but it has not explained why there is such an unusual spurt now. Meanwhile, the Reserve Bank of India (RBI) maintains there was no shortage in the supply of currency notes and cites “logistical reasons”. The Union Finance Minister Arun Jaitley’s initial remarks on the issue weren’t satisfactory since he overlooked the issue of the common man in various states as he denied the cash crunch by saying that there is the adequate amount of money in circulation.
RBI Claims no Shortage
According to the RBI, the currency in circulation has normalized, after demonetization knocked off the bulk of it. It has denied by saying that “there is no currency shortage, has sufficient cash in vaults and currency chests”. Both finance minister and the SBI has declared that the cash crunch is temporarily and that normalcy will be restored within a week.
Among the states which are facing the issues of cash shortage currently are poll-bound, this year or the next. As a matter of fact, politicians and political parties deal almost exclusively in cash. However, the ones who are worst hit by the unavailability of cash in the ATMs are the traders and the general public in the respective state.
Even though the government talks about ‘Achhe Din’ and making India a cashless economy, the current scenario is very much unfavourable to the people. It is saddening to realize that the concerned authorities didn’t give any heed to the matter that ended up disrupting people’s lives! RBI claims no shortage of money and the finance minister supports the statement, if so, why ATMs are running out of cash? Why there is a menace of the cash crunch in these many states? The ignorance of the lawmakers and the RBI in this matter is quite disappointing as this incident clearly depicts that they have miserably failed to understand the necessities of the common man! If this is what the government meant by ‘Achhe Din’, somewhere we have been deceived by their fake electoral promises.
By: Thamanna Abdul Latheef C