Never Ending Currency Crisis in Visakhapatnam

Looks like the city has no end to currency crisis with a majority of the ATMs putting up ‘no cash’ boards since the past few months. Few bank officials say that this is because of the limited cash supply from the Reserve Bank of India. The demonetisation drive has been choking the supply of cash into banks and the people reduced bank deposits as well in the view of new regulations.

At the time of demonetisation it has been recorded that when Rs.1000 and 500 notes were withdrawn from circulation there were 17,165 million pieces of Rs.500 notes and 6,858 million pieces of Rs.1000 notes in circulation. The circulation of currency then was Rs.15.44 lakh crore.

The new notes of 2,000 and 500, which have been printed after demonetisation are valued at some Rs.10 lakh crore which stands out with a clear deficit of about 5.5 lakh crore cash which can be related to on going currency crisis. The banks have also became more rigid by limiting free ATM withdrawals and other transactions worsening the situation with majority of the customers preferring to higher amounts at a time in order to avoid transaction charges next time.

The most afflicted people are ones who want to draw money for the medical purposes and emergencies. According to some banks the currency crisis has been grappling the treasures and availability of the cash at the banks. Considering these situations the people are more keen on drawing the money in larger amounts and having more cash in hand than in banks.

Feature Image Credit: Tribune