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Mr. Kumar said there are certain areas where there is a problem with running of ATMs and availability of cash of particular denomination.
“It is not a uniform cash crunch problem. It is there in geographies like Telangana and Bihar. We are hoping that the problem will be resolved by tomorrow because cash is in transition and it is reaching these states by today evening,” Mr. Kumar told reporters here.
The finance ministry said earlier this week that there is an unusual spurt in demand in some parts of the country like Andhra Pradesh, Telangana, Karnataka, MP and Bihar. In the first 13 days of the current month, the currency demand went up by ₹45,000 crore.
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“If we (people) hold everything, then whatever supply we (banks) do, it will be insufficient for the country. So it is important that the currency is also recycled,” he said. Economic Affairs Secretary Subhash Chandra Garg had earlier this week said that the government suspects that 2,000 notes are being hoarded as they are not coming back into the circulation fast enough. To deal with currency shortage, the printing of 500 notes have been increased 5 times.