The press in Dewas prints Rs 500 and Rs 2,000 denomination notes. (Representational)
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ATMs in parts of multiple states are reported to be running dry, workers at a government-run printing press in Madhya Pradesh are working three shifts to print currency notes. On Tuesday, the government reportedly said it has decided to increase printing of Rs. 500 notes by five times to meet the "unusual" currency demand.
Staff at the Bank Note Press in Dewas, 153 km from Madhya Pradesh, started to work in three shifts from Tuesday. Their work timings were divided into two shifts until now. The press in Dewas prints Rs 500 and Rs 2,000 denomination notes.
Finance Minister Arun Jaitley had said that the government is tackling the situation "quickly". "Overall there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by 'sudden and unusual increase' in some areas is being tackled quickly," Mr Jaitley said.
People in various parts of the country, including Delhi, Karnataka, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh, Bihar, Telangana and Maharashtra have been unable to withdraw cash from ATMs, in a reminder of the long queues outside ATMs during the 2016 notes ban.
The staff at the Bank Note Press in Dewas started to work in three shifts from Tuesday.
Madhya Pradesh Finance Minister Jayant Kumar Malaiya claimed that the cash crunch was because of a shortage of of Rs. 2, 000 notes.
"This situation (cash crunch) is not restricted to the state, it is there in the entire country. It is true that the notes of Rs.2000, which amounts to a currency of Rs. 7 lakh crore have gone out of supply, thus leading to such a situation," he told news agency ANI.
Economic Affairs Secretary Subhash Chandra Garg said the government suspects that Rs. 2,000 notes are being hoarded as they are not coming back into the circulation fast enough.