Why is there no cash in ATMs across the country?

“Water, water everywhere, but no drop to drink!”

This seems to be the state of currency now, with the ruling government and Finance Minister, Arun Jaitley assuring people that there is adequate cash in circulation, the fact remains that most ATMs across the country have gone dry and people are facing serious hardships.

Why is there sudden spurt in demand? Elections?

The Finance Minister blames the problem to a sudden spurt in currency demand in the past three months, particularly in states of Andhra Pradesh, Karnataka, Telangana and Madhya Pradesh. He reassures the people that there is enough money in the banks and that this is a temporary crunch.

But the fact remains that ATMs have run out of money for the last 10 days , not just in rural areas but also in the metros. The “No Cash” signposts seen during the unforgettable months of demonetisation are back and Delhi, Patna, Bhopal, Varanasi and in the South, Hyderabad, Coimbatore and Bangalore are all facing the sudden cash crunch.