Cash crunch neither sudden nor temporary, Telugu states tell Jaitley

Both the Telugu states on Tuesday disputed Union Finance Minister Arun Jaitley's claim that cash crunch in banks and ATMs is sudden.

Telangana said the cash shortage is neither sudden nor temporary and urged the Union Minister not to brush away an issue that is eroding people's confidence in banking system.

The Andhra Pradesh government termed Jaitely's statement as "irresponsible" and said people were facing hardships due to cash crunch.

"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 asudden and unusual increase' in some areas is being tackled quickly," tweeted Jaitley on Tuesday.

Hours later, Telangana's Minister K.T. Rama Rao tweeted that the problem is neither sudden nor temporary.

"Sir, with due respect the cash shortage in Banks & ATMs is neither sudden nor temporary. I've been hearing complaints for over 3 months repeatedly in Hyderabad Pls have RBI & Fin Min team dig deeper & not brush away an issue that is eroding people's confidence in banking system," tweeted Rama Rao, who is son of Chief Minister K. Chandrasekhar Rao.

Andhra Pradesh Chief Minister N. Chandrababu Naidu's son and Cabinet Minister N. Lokesh also reacted to Jaitley's statement.

"It's very sad that, Hon'ble Finance Minister @arunjaitley ji is not understanding the reality, and saying every thing is good. AP is facing severe cash crunch. AP Govt is not able to even give the pensions and pay to MGNREGS workers," he tweeted.

Lokesh said Chandrababu Naidu had written several times about this issue to central government but the situation has not improved. "Atleast now, Central Govt. has to react on this, and resolve the issue at the earliest," Lokesh added.

The Finance Ministry said that unusual spurt in demand is seen more in some parts of the country like Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar.

--IANS

ms/vd