The Reserve Bank of India on Tuesday said that it is "taking steps to move currency to areas" which have witnessed unusually large cash withdrawals.
"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.
RBI is closely monitoring both these aspects, " the RBI said in a statement.
"Further, as a matter of abundant precaution, RBI is also taking steps to move currency to areas which are witnessing unusually large cash withdrawals. "
According to the RBI, there "is sufficient cash in" its vaults and currency chests.
"Nevertheless, printing of the notes has been ramped up in all the four note presses, " the statement added.