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Amid cash crunch anxieties, govt has this to say

statement issued also assured that reserves are there to deal with any form of cash-crunch arising in the country

With the cash crunch now spreading to epidemic proportions, the government on Tuesday said there’s adequate currency stocked in the banks.

The statement issued also assured that reserves are there to deal with any form of cash-crunch arising in the country.

Addressing a press conference on reports of cash-crunch in several parts of India, Economic affairs secretary Subhash Chandra Garg pointed to cash circulation of Rs 18 lakh crore.

There is also a stock of Rs 2.5-3 lakh crore, he said.

Thus the stock preparation is enough to tackle any kind of cash crunch arising at any point of time, he reiterated.

While acknowledging that there is cash crunch in some parts of the country, he said that the demand of cash is higher and people are queuing up at the ATMs to withdraw money to stock an adequate amount.

Garg said supply of currencies was provided to the regions where there was a high demand.

Garg also said that even currency printing has gone up in the past few days.

He also spelled out that printing of Rs 500 notes has gone up and it would to the tune of an estimated Rs 500 crore worth.

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