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Intelligence report by Home Ministry admits cash crunch will continue for one more week

Based On A Report Prepared By The Intelligence Agencies, Home Ministry Officials Said There Has Not Been Enough Money In Circulation.

PTI | Updated on: 16 Nov 2016, 08:37:29 PM
More currency woes in offing: Cash crunch will continue for one more week, admits Home Ministry

NEW DELHI:

Pictures of people making beeline at banks and ATMs can be seen for one more week as cash crunch situation is expected to continue for at least one more week, according to an intelligence report which attributed the unprecedented situation to a huge gap in demand and supply of currency notes.

Based on a report prepared by the intelligence agencies, Home Ministry officials said there has not been enough money in circulation. People are hoarding smaller denomination and not spending Rs 100 notes which they are getting either after exchanging the defunct Rs 500 or Rs 1,000 currency notes or from the ATMs, they said.

Due to huge gap in demand and supply of currency, the cash shortage will continue for at least one more week, officials said. The problem is acute in Delhi and a few major urban centres as not enough ATMs are working and refill remains very slow. Unless the ATMs are operationalised as early as possible, the long queues outside the banks will continue, the officials said.

Prime Minister Narendra Modi on November 8 announced that Rs 500 and Rs 1000 notes ceased to be legal tender and asked people possessing such notes to deposit or exchange the same with banks.

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First Published : 16 Nov 2016, 08:14:00 PM

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