Reserve Bank of India will take steps for cash shortage in market: RBI Governor Shaktikant Das

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Business| The Governor of the Reserve Bank of India, Das said on Monday that the requirements of banks' cash funding has been fulfilled for the time being and if the economy is facing liquidity, the central bank will take necessary steps. Governor Das held a meeting with the associations of small and medium enterprises on Monday in the capital. He told reporters that its position will be discussed with the non-banking financial companies (NBFCs) in Mumbai on Tuesday. He said that while considering the individual proposals of restructuring of loans stuck in the recovery of MSME sector, the company has been asked to keep in mind the strength of the business related unit.

Das said on liquidity, 'We are constantly monitoring it. We believe that together, the needs of liquidity (wealth) are being met.’ He said that if the liquidity problems occurred then the Reserve Bank will take action. Expressing his commitment to maintaining adequate liquidity, he said that the amount of liquidity will be increased according to the needs of the market. About the meeting with MSME, Das said that banks have been asked to investigate the migration of MSME before the restructuring of the loan.

Let us tell you that a committee of parliament had asked the Reserve Bank of India to remove the difficulties related to the ATM. The committee had said that due to the closure of the ATM, customers sometimes face the problem of cash money; in such a situation the central bank should take appropriate steps in this direction.

The Standing Committee of Parliament on Finance had also asked banks to set up adequate ATMs. The report of the committee was presented in Parliament last week. According to the RBI data, the number of automated teller machines (ATMs) of the country was 2,21,492 at the end of September, 2018. Out of these, 1,43,844 ATMs were in public sector banks, 59,645 private sector banks and 18,003 ATM foreign banks, payment banks, small finance banks and white label ATMs.

It has been said in the report that digital transactions have not yet been universal; in this case, the committee wants that the Reserve Bank should work to speed up the ATM stops, to address the problem of reduction in bank ATMs. Also, the financial viability of ATMs should be ensured for all shareholders, so that there is no crisis of cash in front of the public. The committee led by senior Congress leader M Veerappa Moily has said that despite the campaign to cash in the system by the Reserve Bank, the problem of supply of cash at ATMs in rural-semi-urban areas has not been solved. Because of this many ATMs have been shut down.

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