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Man-made Cash Shortage
Moneylife Digital Team 03 May 2018
Economy & Nation
After months of silence, mainstream media, especially television, erupted on 17th April with reports of an acute cash shortage. That there is a cash shortage is, indeed, true. It is also a fact that Rs2,000 notes have been scarce for months, especially in non-metropolitan cities. Sources say that printing of these notes, which was stopped during the demonetisation itself, has never been resumed. So, stocking ATMs is a problem and the central bank hasn’t bothered to ensure a proper supply. When ATMs ran dry at Hyderabad, Pune, Surat or other commercially important locations, there was no response from the Reserve Bank of India (RBI) which manages currency for the government. 
 
However, when the problem hit Delhi and the media head-quartered in the capital went into an overdrive, the government finally woke up to the implications of a national panic over the shortage of cash. Moneylife has been writing to  RBI since October 2017 about the massive proliferation of soiled notes too. However, after a positive meeting and assurance that action will follow, RBI deputy governor 
BP Kanungo lapsed into silence. 
 
This time, the finance minister tweeted about having ‘reviewed the currency situation in the country’, to declare that there is ‘adequate currency in circulation’ and that the ‘temporary shortage’, caused by ‘sudden and unusual increase’ in some areas, is being tackled quickly. But the scare scenario clearly worked in the interest of people, because the secretary economic affairs, also on Twitter, said that a three-member committee has been set up. As always, writing to RBI, reminding it and providing information didn’t work. The system stirs itself into action only when faced with a crisis and pushed by a panicky government. How long can this continue? 
Comments
VENKATESWARLU I
8 years ago
When the executive is indifferent,how can other agencies be different? People deserve the government they have chosen through their franchise.
Reply
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