NEW DELHI: The Union Finance Minister has once again reiterated on Tuesday that the Reserve Bank of India has enough cash to meet the currency demand. He went on to say that the current cash stocks with the RBI are enough to meet the cash crunch until December 30 and beyond.
On contrast, the Finance Minister Arun Jaitley was criticized by the national media for trying to portrait false information as legitimate, knowing the reality of the long queues at the banks and ATMs.
“We are analyzing the cash crunch on a daily basis. There is nothing like a shortage of cash with the Reserve Bank of India. In fact, the cash stocks we have as of now are enough to meet the demands even beyond December 30. The government will make every possible effort to ease the pressure off the public because of the demonetization move”, the Finance Minister said.
The Minister further explained the new currency restrictions announced by the government yesterday. According to it, an individual can now deposit old currency in Rs 500 and Rs 1000 notes amounting to more than Rs 5,000 only once with the banks and the individual depositing the amount must state the source of income. Initially, the government in its announcement on November 8 said that people can deposit their old notes in banks till December 30.
When asked about the sudden restrictions in contrast to the government’s earlier announcement, the Finance Minister replied, “There is a scope for illegal deposits, if we allow multiple deposits of old currency by an individual. When we have stopped all the exemptions allowed with the old currency, there is no meaning in keeping the cash with you and making multiple deposits”. The exemptions the minister referred here, are the transactions like booking of bus tickets and paying for power bills which the government allowed to do with the old currency.
The minister hesitated to reply when a reporter questioned the case of legitimate depositors who could have been thinking of queues to get shorter at banks, keeping in mind the government’s earlier announcement of December 30 deadline.
Though the Finance Minister tried to portray false information with regard to the availability of cash across the country, in reality, the situation has been reported to be getting worse day by day with ATMs and Banks being closed due to the cash shortage.