Cash crunch hits states

Representative image

New Delhi: Several states across the country are hit by severe cash crunch. ATM kiosks in Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh, Telangana and others have gone out of cash for the last few days.

The issue came to notice as people across these states poured in the complaints via social media. Reports suggest that long queues were formed before ATMs in the states as happened after demonetization in November 2016.

Responding to the reports, Reserve Bank of India said that the crunch was due to high withdrawal rate owing to festival season. It also said that actions are on to fix the issue within three days.

Meanwhile, there are unconfirmed reports that the Finance Ministry has formed a committee to study the problem.