State Bank of India’s research wing, SBI Research, is said to have pegged the cash shortage within the system at Rs 70,000 crore. This is at least one-third of monthly withdrawals through ATMs.
SBI Research said reports of cash shortage are “defying logic and intriguing”. It then said currency in circulation breached the pre-demonetisation level of Rs 17.84 trillion.
Identifying one of the reasons for the shortage, the report said it could be the introduction of Rs 200 notes.
Later, speaking to the media, SBI’s Deputy Managing Director Neeraj Vyas said the availability of cash in ATMs has improved in the last 24 hours.
He, however, said efforts are on to improve the situation further.
Meanwhile, the All India Bank Officers Confederation (AIBOC) said the present cash crunch is due to dependency on Rs 2,000 and Rs 500 currency notes.
AIBOC then said the shortage is the result of poor management of cash.
As per RBI data, of the total currency in circulation Rs 18.43 trillion (90%) is in Rs 500 and Rs 2,000 notes, the Confederation said.