Cash crunch due to shortage of Rs 2000 notes: MP Finance Minister

Madhya Pradesh Finance Minister Jayant Kumar Malaiya claimed that the ongoing nationwide cash crunch was on account of a shortage of supply of Rs. 2000 currency denomination.

"This situation (cash crunch) is not restricted to the state, it is there in the entire country. It is true that the notes of Rs.2000, which amounts to a currency of Rs. 7 lakh crore have gone out of supply, thus leading to such a situation," he told ANI.

However, the minister noted that only around 20 percent of all ATMs were closed, adding that currency reserves are not completely empty.

Meanwhile, Bihar Finance Minister Sushil Modi said the Reserve Bank of India (RBI) has been notified of the cash crunch in the state for the past six days, and assured that the problem would be resolved in two days.

"The RBI said there was a shortage of supply of currency notes, due to which the cash crunch occurred. However, they have assured that the problem will be resolved in the next day or two," he said.

People in various parts of the country, including Delhi, Karnataka, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh, Bihar, Telangana and Maharashtra have been unable to withdraw cash from the ATMs, as these have gone dry.

Earlier in the day, Union Finance Minister Arun Jaitley termed the cash crunch in the country as a 'temporary shortage', and assured citizens that the situation is being tackled quickly.

"Have reviewed the currency situation in the country. Over all there is more than 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 wrote on Twitter.

Furthemore, State Bank of India (SBI) Chairman Rajnish Kumar assured the people of the country that normalcy would be restored within a week.