Cash crunch: Opposition says 'terror of note ban' has returned as 'financial emergency'

Opposition parties today slammed the government over cash crunch in ATMs and banks in several parts of the country, saying the "terror of note ban" has returned to haunt the people and dubbed the situation as a "financial emergency".

On the back foot, the government attributed the cash shortage to an unusual spurt in demand in last three months, and 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.

Currency shortage was reported from several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Bihar and poll-bound Karnataka, among other states. Several ATMs in the national capital also saw long queues and soon ran out of cash.

In his Lok Sabha constituency Amethi, Congress President Rahul Gandhi said the "terror of note-ban" has again gripped the country and accused Prime Minister Narendra Modi of destroying the banking system with his demonetisation decision.

The Congress chief also took to Twitter to attack Modi, alleging he "snatched" the Rs 500/1000 currency notes from the pocket of every Indian and "gave" it to Nirav Modi, but was neither speaking a word about it nor facing Parliament.

Nirav Modi, an accused in the alleged Rs 12,700-crore scam at state-run Punjab National Bank, has been absconding.

In Kolkata, West Bengal Chief Minister Mamata Banerjee said the cash crunch was a reminder of the demonetisation days.

"Seeing reports of ATMs running out of cash in several states. Big notes missing. Reminder of Demonetisation days. Is there a Financial Emergency going on in the country?" she said in a tweet.

CPI (M) leader Sitaram Yechury said, "ATMs were empty in November 2016. ATMs are empty now. And the only party flush with cash is the BJP: People suffer."
Countering the government's stand, Yechury said, "This government which still has not been able to count the demonetised currency is asking us to trust its Jumla that there is no cash crunch."
Firebrand student leader Kanhaiya Kumar also took swipe at Jaitley, saying, "Dear Finance Minister, cashless economy does not eman cashless banks and cashless ATMs. We hope you understand."