Cash crunch: ATMs are running dry across India; government says needs three days to fix problem

Agencies
April 17, 2018

New Delhi, Apr 17: ATMs in several cities across the country, operated by both state-run and private banks, are reportedly running dry. The problem seems to have affected ATMs in cities and towns across Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh, according to media reports.

One reason for this could be that cash withdrawals at some bank branches and their ATMs are much higher than deposits made at those branches.

An email sent to the Reserve Bank of India (RBI), on Tuesday, seeking response on the reported cash shortage, remained unanswered when this report was published.

Commenting on the cash crunch, Finance Minister Arun Jaitley assured hassled customers that the government will resolve the problem 'quickly'. Minister of State (MoS) for Finance SP Shukla said the Centre needs three days to fix the problem. Separately, State Bank of India (SBI) Chairman Rajnish Kumar told CNBC-TV18 that there is sufficient cash in the system.

Troubled customers tweeted about the non availability of cash at ATMs.

West Bengal Chief Minister Mamata Banerjee, on Tuesday, said the situation reminded her of the demonetisation days.

Communist Party of India member Sitaram Yechury too took to twitter to express his angst.

MoS for Finance Shiv Pratap Shukla said: "We've cash currency of Rs 1,25,000 crore right now. There is one problem that some states have less currency and others have more. Government has formed state-wise committee and RBI also formed committee to transfer currency from one state to other. It will be done in three days."

Earlier, referring to reports of ATMs running out of cash at some places in his state, Madhya Pradesh Chief Minister Shivraj Singh Chouhan claimed that Rs 2,000 notes were vanishing from the market, and alleged that there is a 'conspiracy' behind their disappearance. Addressing a farmers' convention, Chouhan said: "The currency worth Rs 15,00,000 crore was in circulation before demonetisation. After this exercise [demonetisation], the currency in circulation increased to Rs 16,50,000 crore. But notes of Rs 2,000 are missing from the market."

Several states have faced cash shortages despite the fact that currency flows are now at the pre-demonetisation level. A recent analysis by the RBI has found that the rate of cash withdrawals were far more than cash deposits at banks in states like Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Telangana, according to a report.

According to RBI data, currency in circulation as on 6 April was Rs 18.17 lakh crore.

Bank run

In March, the government's Financial Resolution and Deposit Insurance (FRDI) bill triggered a bank run in two southern states. Thanks to a fear of losing their hard earned money, because of a bail-in clause in the FRDI Bill, people in Andhra Pradesh and Telangana queued up to withdraw fairly large amounts from their bank accounts. The salaried, who typically withdraw only Rs 5,000 to Rs 10,000 in the first few weeks of any month, were seen queuing up to draw the entire amount from ATMs immediately after their salary was credited.

ATMs ran dry immediately after the demonetisation drive was announced, on 8 November, 2016, as people rushed to pull out as much cash as possible.

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Agencies
June 30,2020

Seventy-seven per cent children below five years of age in Jammu and Kashmir were not able to access basic healthcare services like immunisation during the lockdown imposed to curb the spread of COVID-19, CRY said on Monday citing a study.

The 'Rapid Online Perception Study about the Effects of COVID-19 on Children' was conducted during the first and second phases of the lockdown based on responses of parents and primary caregivers from all across the country, including Jammu and Kashmir, the NGO said in a statement.

It said a total of 387 respondents from Jammu and Kashmir participated in the study.

"Seventy-seven per cent children of age 0-5 years were not able to access basic healthcare services such as immunisation during lockdown - necessarily imposed to curb the spread of COVID-19 pandemic in Jammu and Kashmir," Child Rights and You (CRY) said.

It said as immunisation programmes witnessed a major setback during the lockdown across the country, the results of the survey across 23 states and Union Territories found nearly 50 per cent of parents with children below five years of age unable to access immunisation services.

"Worryingly, the figure was considerably high in Jammu and Kashmir with 77.14 per cent children below five years unable to get immunisation services," it added.

According to the study, in Jammu and Kashmir, nearly 35 per cent of the respondents said their children did not receive medical help during the lockdown, resulting in difficulties to cope with their children's illnesses and health hazards.

The study also talks about more systemic arrangements and logistical preparedness to ensure that children with no or compromised digital reach are not deprived from their Right to Education.

With online classes introduced as a substitute of schools during the lockdown, access to education for children remained a major issue of concern, as many of them, especially the ones from marginalised and financially poorer backgrounds found it difficult without smartphones and internet access.

The survey's findings revealed that nationally only 41 per cent households with children of school-going age could access online classes on a regular basis.

"Almost 90 per cent parents and primary caregivers reported that the lockdown has increased the screen time of their child to great or some extent. About half of the households recorded an increase of children's exposure to online activities during lockdown," it said.

The NGO said around 76 per cent parents agreed that they could keep a watch of their children's online activity to some extent.

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News Network
June 23,2020

New Delhi, Jun 23: In an unexpected development, the pump price of diesel is all set to surpass the petrol price in the capital, making it the most expensive transport fuel for the first time in a long time.

Globally, diesel is priced slightly above petrol prices due to the very nature of the product that has a higher cost of production. But in India, due to the lopsided taxation structure, diesel attracts lesser of the tax between the two auto fuels keeping its prices lower than petrol for last several years.

Diesel is currently priced at Rs 79.40 a litre in the Capital, just 36 paise short of petrol price that is being retailed at Rs 79.76 a litre. Going by the trend of price movement in the two products for the last few days where diesel prices have consistently increased by 50-60 paise per litre while the daily increase in petrol prices have fallen to just 20 paise on Tuesday, it is set to surpass petrol prices in next few days.

"Diesel price movement is sharper in international market and if oil companies follow the global price trend, diesel prices will surpass that of petrol later this week. It will be after many years that this would happen and is expected to sustain for some time unless government changes the tax structure of the petroleum products again," said an oil sector expert from one of the big four audit and advisory firms asking not to be named.

Interestingly, even in India the base price of diesel is expensive than petrol. According to the Indian Oil Corporation (IOC), while the base price of petrol in Delhi currently comes to Rs 22.11 per litre, the same for diesel is higher at Rs 22.93 per litre (effective from June 16, 2020). This has been the case for a long time, but retail price of petrol can be higher than diesel due to central and state taxes.

What has now brought diesel prices to a whisker of petrol prices in the capital is the Delhi government's decision early May to increase the Value Added Tax on diesel from 16.75 per cent to 30 per cent and on petrol from 27 per cent to 30 per cent. This increased the retail price of diesel and petrol in Delhi by Rs 7.10 and Rs 1.67 a litre respectively. With Central taxes on the two products already reaching identical levels, the Delhi governments move hastened price parity between petrol and diesel.

Currently, the Central excise on petrol is Rs 32.98 a litre while that on diesel it is Rs 31.83 a litre. The VAT on petrol in Delhi is Rs 17.71 a litre and that on diesel is Rs 17.60 a litre.

While the movement of retail pricing is being seen with a sigh of relief by vehicle owners whose cars run on petrol, those buying the relatively expensive diesel cars are now repenting on their decision. The development is also being seen with caution by automobile companies who have spent millions to ramp up their facilities for diesel run vehicles. The expectation is that demand for such cars will now fall, causing more damage to companies where sales are already impacted due to persistent economic slowdown and now the spread of COVID-19 pandemic.

"The pricing development would push automobile companies to strategies being followed by companies in the western markets where diesel run cars are not sold on fuel pricing differential, but on overall make and quality that puts them ahead of petrol run cars," the expert quoted earlier.

Yes, but for commercial vehicle sector the rising price of diesel had not been welcomed. In fact, the commercial transport sector had time an again threatened strike against the move to raise fuel prices.

With petrol and diesel retail prices closing, the case for adultering fuel has also gone down much to the relief of vehicle owners.

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News Network
February 5,2020

Mumbai, Feb 5: Maharashtra Chief Minister Uddhav Thackeray on Wednesday said there was no need to fear the Citizenship Amendment Act, but asserted his government will not allow the proposed National Register of Citizens to be implemented as it would "impact people of all religions".

Throwing out Bangladeshi and Pakistani migrants out of the country was an old demand of the Shiv Sena, the chief minister said in the third and concluding part of his interview to party mouthpiece 'Saamana'.

"I can confidentally say the Citizenship (Amendment) Act (CAA) is not meant to throw Indian citizens out of the country. But, the National Register of Citizens (NRC) is going to impact Hindus as well," the Sena president said.

India has the right to know the number of minorities from neighbouring nations who applied for Indian citizenship after being persecuted in their home countries, he said.

"When they come here, will they get homes under the 'Pradhan Mantri Awas Yojana'? What about employment and education of their children? All these issues are important and we have the right to know," hesaid in the interview to Saamana's executive editor and Sena MP Sanjay Raut.

"As chief minister, I should know where will these people be relocated in my state. Our own people don't have adequate housing. Will these people go to Delhi, Bengaluru or Kashmir, since Article 370 is now scrapped?" he wondered.

Several Kashmiri Pandit families are staying like refugees in their own country. The CAA is not to throw citizens out of the country, Thackeray said.

"However, the NRC will impact Hindus and Muslims and the state government will not allow it to be implemented," he asserted.

Under the NRC, all citizens will have to prove their citizenship. In Assam, 19 lakh people could not prove their citizenship. Of these, 14 lakh are Hindus, Thackeray claimed.

In a veiled attack on his cousin and MNS chief Raj Thackeray, who will lead a rally in support of the CAA and NRC in Mumbai on February 9, the chief minister said the NRC is not yet a reality and there is no need for a 'morcha' in support of or against it.

"If the NRC is enforced, those who are supporting it will also be affected," he said.

Under the NRC, even Hindus will have to prove their citizenship. "I will not allow the law to be enacted. Whether I am chief minister or not, I will not allow injustice to anybody," he said.

The chief minister also took a veiled dig at the Centre's decision to give the Padma Shri award to Pakistani-origin musician Adnan Sami.

"A migrant is a migrant. You can't honour him with the Padma award. Throwing out illegal migrants was the stand of (late Shiv Sena supremo) Balasaheb Thackeray," he said without naming anyone.

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