Since this week, the presses are minting out Rs 500 and Rs 200 notes without a break to meet an estimated Rs 70,000 crore of currency shortfall in the country, he said.
Normally a currency printing cycle is of 15 days, meaning thereby the increased number of currencies which are being printed beginning this week would be available only towards the end of this month.
Kumar said there are certain areas where there is a problem with running of ATMs and availability of cash of particular denomination.
The government had last month floated a preliminary information memorandum inviting bidders to buy 76 per cent stake in loss-making Air India along with transfer of management control.
India has "quite a high" debt to GDP ratio, but New Delhi is trying to lower it using "the right policies", the International Monetary Fund has said.
"The ink used to print the notes is imported, which is not available now, leading to a halt in the printing of these Rs 200 and Rs 500 banknotes," Jagdish Godse, the president of press workers federation told reporters.
SBI said the cash availability has improved at its ATMs in the last 24 hours, while some other banks including PNB, Canara Bank and Axis Bank maintained the cash shortage was limited to select pockets.
"Such offences are punishable under various penal and prosecution provisions of the Income Tax Act," a notification said.
"The recent reports of cash shortage appear intriguing and defy logic. However, there are a couple of trends that beg explanation and may be the possible reasons for such apparent trend," an SBI Ecowrap report authored by Chief Economist Soumya Kanti Ghosh said.
China's proposal came after visiting Nepalese Foreign Minister Pradeep Kumar Gyawali held talks with his Chinese counterpart Wang Yi.
In a statement by SBI said that the bank is constantly monitoring the situation and making immense efforts to ensure the supply of currency in abundance at all its ATMs.
A statement from the Finance Ministry confirmed reports of cash shortages and some ATMs running dry or becoming non-functional in some parts of the country.
Using the situation to his advantage, Congress president Rahul Gandhi launched an all out attack on Prime Minister Narendra Modi. Rahul accused PM Modi of destroying the banking system with his demonetisation decision.
The company said its income from operations for the first quarter also rose by 4.6 per cent to Rs 420.59 crore.
"In the next couple of days, we will have a supply of about Rs 2,500 crore worth of Rs 500 notes per day. In a month, supply would be about Rs 70,000-75,000 crore. These notes alone can more than meet the demand of any month," a senior official said.
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