Cash crisis in Telangana, Andhra Pradesh

[TampaChinnodu]

Cash crisis in Telangana, Andhra Pradesh: Scared of clause in FRDI Bill, people pull out money

The FRDI Bill, which is being examined by a joint Parliamentary committee, has a bail-in clause which proposes to use depositors’ money to bail out their bank or financial institution if it fails.

 

Written by Sreenivas Janyala | Hyderabad | Updated: April 5, 2018 3:55:18 am

People wait outside an ATM in Thimmapur, Telangana.

TOP NEWS

Rumours that the Financial Resolution and Deposit Insurance (FRDI) Bill, proposed last June, will cause losses to depositors in case a bank goes bankrupt has allegedly led to heavy withdrawals, leading to a cash crunch in ATMs and banks of Telangana and Andhra Pradesh.

The FRDI Bill, which is being examined by a joint Parliamentary committee, has a bail-in clause which proposes to use depositors’ money to bail out their bank or financial institution if it fails.

Some bank officials also believe the Reserve Bank of India (RBI) has deliberately reduced cash supply to banks to force people to make digital payments and increase cashless transactions.

“People are withdrawing money even if they do not need it and keeping it with them. Cash is not coming back into the banking system,” State Bank of India (SBI) regional manager, Visakhapatnam, H Purnima, said. Stating that this is a phenomenon experienced by “all banks” since November 2017, Purnima said, “We are unable to refill ATMs because people are not depositing in banks.”

M Harshavardhan, general manager at SBI’s Hyderabad head office, said that they have noticed customers are withdrawing huge amounts soon as salary is deposited, which is emptying the ATMs quickly. “Earlier, people would withdraw Rs 10,000 or Rs 15,000 in the first week, and withdraw more later during the month. Since November, we are seeing people withdrawing the entire salary, or more than they require (in the first instance available). It is partially due to the FRDI rumours and partially because people think cash may not be available later, so why take the risk.”

Officials pointed at the rumours that ATMs will remain dry for the next six months, and crowd psychology for the run on ATMs in the twin-states. “There is no need to worry — your money is safe in PSU (public sector) banks,” SBI’s Hyderabad circle chief general manager J Swaminathan said, assuring people. “No one has ever lost money in a PSU bank. The FRDI Bill is still a Bill (and not a law), and it does not take away depositors’ money. We appeal to people not to panic.”

Telangana’s Finance Minister Etela Rajender claimed that RBI is not sending enough cash to banks, which has caused the crisis. Telangana, he said, is bracing for a severe impact of this crisis since the state government will start distributing farm subsidy of Rs 4,000 per acre to each farmer from April 20, which amounts to nearly Rs 6,000 crore.

ALSO READ | Bail-in clause in FRDI Bill: Depositors need not have any apprehensions, says government

“Farmers will be given cheques but they would want to cash them immediately, so banks will have to arrange for huge amounts of cash,” Rajender said. “Six banks have been shortlisted to distribute the cheques, and we have asked Union Finance Minister Arun Jaitley to instruct RBI to send cash to Telangana.”

His AP counterpart, Y Ramakrishnudu, also blamed the RBI for the crisis. Unless the apex bank sends adequate cash reserves to banks, he said, the crisis may go on for several months.

Some bank officials claimed that main or big branches of banks have also resorted to hoarding cash instead of distributing to smaller branches, fearing that cash reserve will dry up completely in the coming weeks.

An Andhra Bank regional manager from Vijayawada said that Rs 2,000 notes have almost disappeared from the banking system in the two states. Another bank officer said, “The situation has started easing a bit as RBI has sent over Rs 5,000 crore to AP and Telangana in the last two weeks.”

In December last year, Finance Minister Arun Jaitley clarified that the Bill protects depositors even if the amount is over Rs 1 lakh (deposits up to Rs 1 lakh is insured) because the rules will not be applied to PSU banks. Jaitley stated that a depositor’s money will not be used by the Resolution Corporation without her or his consent.

[TampaChinnodu]

 

[karthikn]

We don't care.. Post Sri reddy updates 

[TampaChinnodu]

NEW DELHI: 

HIGHLIGHTS

1. Reports of non availability of cash at ATMs in several states
2. In Hyderabad, Varanasi and Bhopal people say no cash at ATMs
3. Conspiracy behind non availability of Rs. 2000 notes: CM of Madhya Pradesh

 

 ATMs are out of cash or not working, people have reported from several states, including Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana. People in Delhi have also been tweeting about not getting cash at ATMs, in a reminder of long queues and non-functioning machines after demonetization in November 2016.

In Hyderabad, news agency ANI quoted people as saying they had been unable to withdraw cash since yesterday. There are similar reports from Varanasi.

ANI

 

✔@ANI

 

 

Telangana: People in Hyderabad say, 'We have been unable to withdraw cash from ATMs as the kiosks (ATM Kiosk), in several parts of the city, have run out of cash. We have visited several ATMs since yesterday but it is the situation everywhere'.

11:13 PM - Apr 16, 2018

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ANI UP

 

✔@ANINewsUP

 

 

People in Varanasi say, 'We do not know what or where the problem is but the common man is facing difficulty as the ATM Kiosks are not dispensing cash. We have visited 5-6 ATMs since morning. We need to pay for the admission of children and purchase groceries & vegetables'.

11:48 PM - Apr 16, 2018

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Reports suggest officials of the finance ministry have held a meeting with the Reserve Bank of India (RBI) last Thursday, to take stock of the situation. 

Sources have told NDTV that RBI has directed banks with surplus cash to help other banks facing a shortage of funds. There is a mismatch of demand and supply of cash, say sources. The transactions at ATMs have also gone up; earlier it was Rs. 3000 on an average, now it's Rs. 5000 say sources.

 

Reports of cash crunch at ATMs have brought back memories of November 2016, when Prime Minister Narendra Modi, in a midnight announcement said old notes will be scrapped. CPM general secretary Sitaram Yechury took a potshot at the government, he tweeted ATMs are dry but "only party flush with cash is the BJP."

Sitaram Yechury

 

✔@SitaramYechury

 

 

ATMs were empty in November 2016. ATMs are empty now. And the only party flush with cash is the BJP: the people suffer.

11:59 PM - Apr 16, 2018

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Madhya Pradesh Chief Minister Shivraj Singh Chouhan has alleged a conspiracy behind Rs.2,000 notes vanishing from the market.

Addressing a farmers' convention, Mr Chouhan said on Monday, "The currency worth Rs.15,00,000 crore was in circulation before demonetisation. After the demonitisation exercise, the currency in circulation increased to Rs. 16,50,000 crore. But notes of Rs. 2,000 are missing from the market."
 

ANI

 

✔@ANI

 

 

#MadhyaPradesh: People in Bhopal say 'We are facing a cash crunch. ATMs are not dispensing cash. The situation has been the same since 15 days. We have visited several ATMs today as well, to no avail.'

12:16 AM - Apr 17, 2018

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He was referring to news reports of ATMs running out of cash at some parts of the state.
 

COMMENTS

"Where are these notes of Rs. 2,000 denomination going? Who is keeping them out of circulation? Who are the persons creating shortfall of cash? This is a conspiracy to create problems. The government will act tough on this," he said.

Mr Chouhan added he had raised the problem with the Centre.
(With inputs from ANI & PTI)

[SilentStriker]

maggavale

[SilentStriker]

cashless ATM's maggavale

[aakathaai]

6 minutes ago, SilentStriker said:

cashless ATM's maggavale

Mee laanti dabbunnollaki ATMs value telidu

[TampaChinnodu]

 

[Kool_SRG]

Its being reported from many parts of the country not alone TG & AP...

Finance Secretary himself confirmed about it.

[Kontekurradu]

not only in TG and AP
all over india ante tagalabadindi

nenu jan lo poyinappude vunde ee problem 

[Kool_SRG]

19 minutes ago, Kontekurradu said:

not only in TG and AP
all over india ante tagalabadindi

nenu jan lo poyinappude vunde ee problem 

Antha nuvve chesaavanamaata, dabbulu draw chesi vijay maalya ki ichavanta ga 

[Kool_SRG]

ATMs run dry in some states, FM Arun Jaitley says temporary shortage

Finance Minister Arun Jaitley said the "temporary shortage" in certain states is being "tackled quickly" and that there is "more than adequate" currency in circulation.

Several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Bihar and poll-bound Karnataka have reported shortage of currency and ATMs running down, which the government today attributed to unusual spurt in demand in last three months.

Finance Minister Arun Jaitley said the "temporary shortage" in certain states is being "tackled quickly" and that there is "more than adequate" currency in circulation.

Jaitley, who has been away from office since April 2 due to kidney ailment, said he has reviewed the currency situation in the country.

 

"Overall there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by 'sudden and unusual increase' (in demand) in some areas is being tackled quickly," he said in a tweet.

 

 

The government is checking with banks and the Reserve Bank of India to ensure adequate supply of currency.

A statement by the finance ministry confirmed reports of cash shortages and some ATMs running dry of cash or becoming non-functional in some parts of the country.

"There has been unusual spurt in currency demand in the country in last three months," it said.

While currency supply increased by Rs 45,000 crore in the first 13 days of April, "unusual spurt in demand" was seen more in some parts of Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar, it said.

Minister of State for Finance Shiv Pratap Shukla said the government has formed a committee to address the problem of currency shortage in certain states and the issue would be resolved in next 2-3 days.

"The Government has set up state-wise committee and RBI has also formed a committee to transfer currency from one state to other because for money transfer you need the permission of the RBI. It (the shortage) will be solved in 2-3 days," he said.

RBI report shows that the currency in circulation in the country has reached the pre-demonetisation level of about Rs 17 lakh crore.

"The Government of India with the Reserve Bank of India have taken all steps to meet this unusual demand. We had adequate reserves of currency notes which have been used to meet fully the extraordinary demand generated so far," the finance ministry statement said.

"We continue to have in stock adequate currency notes of all denominations, including of Rs 500, Rs 200 and Rs 100 to meet any demand," it added.

The government said there has been adequate supply of currency notes to meet entire demand. "The government would also like to assure that it would be supplying adequate currency notes to meet even higher levels of demand if such demand were to continue in the coming days/months."

Also, steps are being taken to ensure that ATMs are supplied with cash and non-functional ATMs normalised at the earliest.

SBI Chairman Rajnish Kumar said it would not be correct to state that there is a currency shortage in the country. There has been an "imbalance" due to the crop procurement season, when demand for currency goes up.

[Kool_SRG]

 

Cash crunch: ATMs in many states go dry, govt blames unusual spurt in currency demand

 

[Bairagi From Bapatla]

Election ayye dhaka em matladadhu... election ki 3days mundu antha cash release chestham ippatiki rotation lo unnadi vadukondi

[Kontekurradu]

3 hours ago, Kool_SRG said:

Antha nuvve chesaavanamaata, dabbulu draw chesi vijay maalya ki ichavanta ga 

yes vadu india lo karchulaki levai tesukoni, UK ragane £ lo iichadu with interest