Raids conducted on cash hoarders amid currency crunch in India

NEW DELHI, April 19 (Xinhua) -- Amid reports of recent cash crunch in parts of the country, Indian tax authorities are conducting raids on possible cash hoarders, official sources said Thursday.

Mostly, the currency notes of Rupees 2,000 denomination have gone missing from ATMs in the affected areas, though Finance Minister Arun Jaitley maintained that there is enough currency in circulation and that it is a "temporary" cash shortage.

"Have reviewed the currency situation in the country. 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," he tweeted.

According to the sources, raids are being carried out in southern states of Karnataka and Andhra Pradesh. Notably, Karnataka goes to polls next month.

Simultaneously, the country's central bank - the Reserve Bank of India (RBI) has been directed to pump in funds into some of the states facing the currency crunch.

According to leading English daily "The Times of India," the focus of raids was on individuals and entities that have undertaken large withdrawals over the last few weeks.

"In some cases, the withdrawals are not justified and they do not tally with the income or spending patterns. We believe that cash is only being held with no actual spending planned in several cases," it quoted an official source as saying. Enditem