RBI MPC member predicts ‘less severe’ high food inflation
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) member highlighted that going ahead, as India develops, the problem of high food inflation would be "less severe".
The Reserve Bank of India on Tuesday said there is no shortage of currency in the system even though it has ramped up printing of notes at its four presses.
The RBI, however, said there may be shortages in “some pockets” largely due to logistical reason.
“It is clarified at the outset that there is sufficient cash in the RBI vaults and currency chests. Nevertheless, printing of the notes has been ramped up in all the four note presses,” it said in a statement.
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The statement has come amid reports that several states, including Andhra Pradesh, Karnataka, Uttar Pradesh, Madhya Pradesh and Bihar.
The RBI said shortage “may be felt” in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway.
“RBI is closely monitoring both these aspects,” the central bank said.
Further, as a matter of abundant precaution, RBI said it is also taking steps to move currency to areas that are witnessing unusually large cash withdrawals.
Earlier in the day, Finance Minister Arun Jaitley had assured people that there was no shortage of currency as adequate stocks were available.
The Economic Affairs Secretary in New Delhi said printing of the 500 currency note is being increased by five times from Rs 500 crore a day to Rs 2,500 crore a day.
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