From speeding up currency printing process to airlifting new notes, RBI is doing everything to ease cash crunch situation

With the ongoing cash crunch in the whole nation, the Reserve Bank of India (RBI) has decided to further increase the printing scale of new Rs 500 notes, in a hope that it will ease the situation. Banks across the country continue to face cash shortages and most of them are running out of money.

Private Banks are facing a tough time with the cash problem and according to the industry data, the supply was sharply reduced. The four currency printing presses, two owned by RBI at Mysuru and Salboni, and two government-owned ones at Nashik and Devas, which were operating two shifts, have now started working three shifts.

The focus now is on augmenting the supply of Rs 500 notes, the sources said.

"Supply to other banks will definitely improve. We are air-lifting 500-rupee notes. There will be some pressure initially but in the next few days it will ease," a government source told TOI.

RBI is planning to increase the cash to nearly four times of what banks have been receiving in the last week and it is hoped that it will improve the conditions in bank branches and ATMs of large lenders is expected to improve substantially.

Banks will be using the money to make available funds in centres where they have large number of salary accounts.

Private Banks have also been making arrangements to distribute funds in companies which have a salary account with them through mobile devices.

"For several years now, bulk of salary withdrawals are happening through ATMs. To take care of salary demand, we have filled our ATMs with Rs 2,000 notes," an official with a public sector bank, told TOI.