Hitting back at the Centre government over the issue of empty ATMs in the nations, Andhra Pradesh and Telangana government has termed Centre’s excuse that the cash crunch situation was ”sudden and temporary” a bluff and mentioned that they had raised their concerns to the Central government and also to the Reserve Bank of India (RBI) in advance. Further speaking on the issue, Andhra Pradesh chief minister N Chandrababu Naidu has raised the concern and written to the Finance Minister Arun Jaitley asking the Centre that the RBI should provide Rs 5,000 crore to his state as it was facing a serious shortage of higher/lower denomination currency notes.
“Majority of the bank branches are running out of cash every day. The currency crisis will become very serious in the coming days when the state government will have to make salary and pension payments on the 1st of March, 2018,” Andhra Pradesh CM Chandrababu Naidu raised the issue with the Centre. In his letter to the Centre, Andhra Pradesh CM Chandrababu Naidu has also raised the issue of how the farmers would withdraw money which they own against the procurement of food grains.
Naidu also added that in order to manage money for the pensioners and salary payments, the states need Rs 450 crore and Rs 2,500 crore. Amid the cash shortage in the country, Finance Minister Arun Jaitley had said there was a temporary shortage of currency which had taken place due to sudden and unusual increase in some regions.
Apart from Andhra Pradesh CM Chandrababu Naidu, Telangana CM minister KT Rama Rao said that the cash crunch situation was “neither sudden nor temporary”. KT Rama Rao who claimed that the shortage of cash was “neither sudden nor temporary”. Giving his response on the issue, KT Rama Rao said that he was hearing complaints about cash shortage for over 3 months in Hyderabad. ” Please have the RBI and finance ministry team dig deeper and not brush away an issue that is eroding people’s confidence in the banking system,” Rao added. Meanwhile, a request to supply cash in the state was also raised by Telangana Chief Secretary. He had written to RBI governor where he had highlighted about cash shortage situation and requested for a supply of Rs 6,000 crore for banks.
Meanwhile, the tax authorities in Karnataka and Andhra Pradesh are conducting a series of raids in the states facing a cash crunch. According to a report in the Times of India, around 30-35 raids have been conducted till now. Meanwhile, the government and RBI are trying to tackle the cash crunch in some states as they have moved to pump funds into the affected states. However, the problem has taken an enormous state in the states of Andhra Pradesh and Telangana, where the large contractors are considered to be the main suspect in hoarding cash by I-T department.