There is sufficient cash in the RBI vaults and currency chests, the central bank said.
The Reserve Bank and the government have assured the public that there is no currency shortage.
"Unusually large cash withdrawals" have lead ATMs in some places to run out of cash.
"It has been reported in a section of the media that there is shortage of currency in certain parts of the country.
It is clarified at the outset that there is sufficient cash in the RBI vaults and currency chests," the RBI said in a statement.
The central bank also said that printing of the notes has been ramped up in all the four note presses.The RBI also clarified that the "shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway." Further, "as a matter of abundant precaution, RBI is also taking steps to move currency to areas which are witnessing unusually large cash withdrawals," the central bank said.Seeking to assure the public, Finance Minister Arun Jaitley said he has reviewed the situation and the government would fix the problem 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 demand) in some areas is being tackled quickly," Mr Jaitley said in a tweet.SBI chief Rajnish Kumar said, "We are reviewing the situation constantly.
And there is a huge team sitting in the State Bank of India (SBI), which monitors the situation and wherever the corrective action is required, we are taking that action."In certain states, we have surplus currency, which we are also moving from one currency chest to another," he added.