There is no cash in many of the ATMs in Telugu states as well as Karnataka. The SBI officials have confirmed that in 3 to 5 states there is cash crunch and it has to be addressed. The RBI officers said that Currency printing is also being ramped up so that the cash crunch situation can be arrested soon.
Arun Jaitley the Finance Minister said that the situation is a temporary phenomenon and that can be improved shortly. The Minister of State for Finance also agreed that there is a shortage of cash in some states and it has to be solved.
Rahul Gandhi the Congress Chief blamed Prime Minister Modi for spoiling the banking system in the name of demonetisation. The BJP leaders are of the opinion that the Congress leaders may be hoarding money for Karnataka elections.
Minister for IT From Telangana KT Rama Rao has got a lot of complaints, that there is no cash in the ATMs. He also clarified to the FM that there is cash crunch in Telangana since last several months and that the issue has to be addressed in a better manner. People have started borrowing and adjusting cash from each other. Some shopkeepers and panwalas are also arranging small cahs for the regular customers with small interest rates.
Some of them are postponing the purchases as there is no cash and they do not want to buy in digital transactions for tax reasons. There is a fluid situation in the market and people are squarely blaming the Modi government for this severe cash crunch. The situation could have a bearing on the Karnataka election and it is advantage Congress.