INSUBCONTINENT EXCLUSIVE:
Currently around Rs 18 lakh crore worth of currency is in circulationNew Delhi: In a bid to meet the "unusual" currency demand, the
government has resolved to raise the printing of Rs 500 notes by five times, Economic Affairs Secretary Subhash Chandra Garg on Tuesday said
"We have taken steps to increase the supply of currency in case the demand were to go up further
To give you an example, Rs 500 notes we print about 500 crore of notes per day
We have taken steps to raise this production five times," Garg said at a press meet called to calm fears after reports of currency shortages
emerged from several parts of the country."Very soon, in the next couple of days, we will have a supply of about Rs 2,500 crore worth of Rs
In a month, supply would be about Rs 70,000-75,000 crore
These notes alone can more than meet the demand of any month," he said.: SBI Chief Says Cash Crunch Situation To Be Resolved In Next One
WeekGarg asserted that there was no cash crunch in the country, pointing out that currently around Rs 18 lakh crore worth of currency was in
circulation -- a little over what was in circulation at the time of demonetisation."We keep Rs 2.5-3 lakh crore more currency in stock for
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.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.Garg attributed this sudden cash demand to localised phenomenon."This unusual spurt in demand is seen more in some parts of
the country like Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar," the Finance Ministry said in a statement on Tuesday."We
have noted that this is coming more from some parts of the country
There might also be some sort of a feeling in some people that if the cash runs out, why not keep it in reserve so it may be safe a kind of
But believe us, there is no shortage, there is no cash crunch," he said.: Cash Crunch: As The ATMs Go Dry In Some States, Arun Jaitley Puts
Up A Brave Front"There is no shortage of notes in stock, there is no shortage of cash being printed Therefore I would urge every citizen not
to hoard or stock cash -- it is not required
You are unnecessarily raising your risks
We have adequate cash, but the preferable mode of use is digitisation, so use it," Garg added.Asked whether there was any hoarding of the Rs
2,000 notes, he said: "In this system, there are about 6.70 lakh crore worth of Rs 2,000 notes
They are more than adequate to meet the transaction demand of customers But, off late, we have noted somewhat lesser inflow coming back from
circulation."We have not got this investigated, but you can assume that this one note is most suitable for people to keep with themselves
There has been some tendency of some people using Rs 2,000 notes, but that does not affect the overall supply of the Rs 2,000
notes."Justifying the higher currency circulation in the system compared to the pre-demonetisation period, Garg said: "At the time of
demonetisation, the currency in circulation Rs 17.5 lakh crore
Currency in circulation now is about Rs 18 lakh crore
So it is in absolute numbers higher than at the time of demonetisation.""But demonetisation is one-and-a-half years earlier if we had taken
that growth path, we would had still been much higher
If the currency had grown as it was growing before demonetisation, probably it would have been somewhere at the level of Rs 22-23 lakh crore
So, we are at a lower level.(Except for the headline, this story has not been edited by staff and is published from a syndicated feed.)
