Over all there is more than adequate currency in circulation and also available with the Banks.
"The crunch is due to inadequate supply of currency by RBI, reduction in cash inflow from the public, high demand for higher denomination notes". Who is trying to create a cash crunch? Earlier, finance ministry officials had reportedly met with the RBI officials to take stock of the situation.
Amid the reports of empty ATMs, the chief minister asked whether a "financial emergency" was going on in the country. The RBI may either be holding back Rs 2000 notes or could have stopped printing high denomination currency, said a SBI Research report in December a year ago.
The people in Delhi, on the other hand, said that most of the ATMs are dispensing only Rs. 500 notes. This was nearly a month after ATMs in Andhra Pradesh and Telangana had run dry.
Minister of State for Finance, S P Shukla told ANI that the cash crunch was due to some states having low currency reserves in comparison to others. The demand for currency is also reflected in the slowdown in deposit growth. As of March 2018, bank deposits grew at 6.7 percent compared to 15.3 percent in 2016-17. While addressing a farmers' convention, he said, "The currency worth Rs. 15,00,000 crore was in circulation before demonetisation".
Also, famous author Chetan Bhagat, in his characteristic witty style, remarked, "There used to be dry days for alcohol".
However, the opposition was not happy and criticised the Centre, saying PMModi had destroyed the banking system.
Reports pointed out that banks in Telangana and Andhra Pradesh witnessed long queues for closure of fixed deposits as well as withdrawal from saving bank accounts.