Demonetisation: Three-day bank holiday may escalate cash crunch

Due to the holidays starting from December 10, all the banks would remain closed for three consecutive days.

By: PTI | Mumbai | Published: December 10, 2016 4:31 pm
cash, cash crunch, bank holiday. bank holiday dates. banks with cash, banks with cash mumbai, india bank holidays, india news People standing in an ATM to withdraw cash. (Source: File/Reuters)

With banks closed for three consecutive days from Saturday and ATMs in still not functioning to full capacity, the ongoing cash crisis may escalate further leaving residents high and dry for want of cash during the weekend. Customers are venting anger as most of the ATMs are running dry. As banks remained closed, long to moderate queues were seen outside different cash-loaded ATMs, while some ATMs continued to flash ‘ATM Closed’ placard.

Citizens who stood by government’s decision to demonetise high denomination notes earlier, are now running out of patience following reports that huge amount of cash in new currency is being seized by the Income Tax and police authorities across the country.

“This is really shocking and shameful that a common man is dying in the bank and ATM queue to get Rs 2,000 and Rs10,000 but the high and mighty are stashing cash of over Rs 60 crores and Rs 80 crores … where are these notes coming from? Can this be possible without nexus of bank officials,” a former banker from Indian Bank said while letting out his aggression.

Referring to the cash seizure of Rs 85 lakh in Rs 2,000 notes from a person at Matunga in central Mumbai by police yesterday, he said, “Bankers are turning the bold decision by the Prime Minister into a meaningless exercise.”

Meanwhile, few banks including a private sector bank kept their branch open for accounting purposes. A senior executive of the bank having branch at Ghatkopar (East), said, “We have been asked to keep the bank today for accounting purpose and we are doing the same here. It is not open for public.”

Interestingly, few ATMs in south Mumbai dispensing Rs 2,000 notes were found empty, an indication that people are not in favour of possessing this high denomination note.

Due to the holidays starting from December 10, all the banks would remain closed for three consecutive days. December 10 being a second Saturday, December 11 being Sunday and December 12 being Milad-un-Nabi, Prophet’s Birthday.

Ajeet Kumar, an executive working with a pharmaceutical company, who withdrew Rs 2,000 from an ATM in suburban Andheri, said, “It seems that the real trouble will begin from tomorrow (Sunday) as few ATMs are currently filled with cash which would be over by evening today.”

“It would be interesting to see how people will cope up with cash crunch for next two days after cash in the ATMs dries up,” he said

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  1. S
    Dec 10, 2016 at 11:57 am
    I sincerely appeal all who matter to make demonetisation a success the following:lt;br/gt;1) Make it Mandatory for all Bank A/c holders to take MMID and;br/gt;2) Provide all a basic Mobile Handset at Cost to;br/gt;3) TRAI must provide a basic tariff free plan exclusively for Banking;br/gt;4) Generate MMID and MPIN by default and intimate all Bank A/c holders. This should not take more than 2;br/gt;5) All those who do not have Bank A/c, must compulsorily open within a;br/gt;6) Now, within 2 weeks every citizen will have a Bank A/c with MMID and MPIN which is operated as a Wallet/;br/gt;7) Almost 80℅ would be having their mobiles as Wallets with pword;br/gt;8) Implementation of this plan will significantly reduce cash dependency and remove the woes of cash dependent citizens.
    1. G
      Gayle Ann
      Dec 11, 2016 at 9:55 am
      It does not matter about what laws are ped to try to stop criminals. I am almost 70 years old, and if I've learned anything in my life, it's that criminals will find a way around any laws enacted by any government. So this attempt to stop criminals was a totally fruitless attempt, in my opinion. For example, in the U.S. back in the days before I was born in 1947, the government tried to ban alcohol. But there were bootleggers making booze everywhere and smuggling it everywhere. Eventually the government realized that they had might as well give up. And they did. People started being able to buy liquor again. My point is this: Yes, it's the job of the government to enforce its laws against criminals; but it must be done with COMPLETE cooperation of ALL bank officials, law enforcement and the general public for it to be accomplished. Otherwise, it's just a disaster for everybody; but most especially the poor, innocent and middle-cl people. I am so sorry for the many lives lost in this scheme and for the many poor who are going hungry because they cannot get their wages and feed their families. This scheme was not planned out appropriately and well in advance; no one in the government looked at the "big" picture, before embarking on this disaster. I am just praying that things will improve shortly and get back to normal; but I really don't see that happening. But I keep praying anyway.
      1. Y
        Dec 12, 2016 at 6:09 am
        This govt will soon be voted out of power. In our imperfectly developed political system all this attempt to modernise processes will be defeated by inherent greed embedded in our society.
        1. R
          roby mani
          Dec 10, 2016 at 1:51 pm
          Objectives of demonetisationlt;br/gt;1. Eliminate black money stored in form of cash:lt;br/gt; Result - around 14 lakh crores expected to be returned as against 10 lac crores lt;br/gt; estimated. Total failure of achieving;br/gt;2. Eliminate forged notes:lt;br/gt; Result - Forged notes have been converted into genuine notes as they have found lt;br/gt; their way into to banks during the course of the return;br/gt;3. Effective anti terrorism tool:lt;br/gt; Terrorist activity still taking;br/gt;4. Cash less societylt;br/gt; Result - success as Modi has been able to make all persons an ATMs cash lesslt;br/gt;THIS MAKES ME THINK: WHY WAS THIS ILL ADVISED EXERSISE TAKEN UP AT ALL? WAS THE MOTIVE DIFFERENT FROM THAT WHICH WAS PROCLAIMED? lt;br/gt;lt;br/gt;One may have to conclude that the motive was not sacrosanct, as we have heard many renowned economists say that it was a wrong move and would end in disaster
          1. S
            Dec 11, 2016 at 10:35 am
            r u Insane? how can anybody force everybody to use mobile phones, open bank accounts etc. Be Realistic and be mature.
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