With pay day having arrived and salaries expected to be disbursed to employees in firms across the country and by the government to its staff, banks and ATMs are facing massive crowds in the wake of demonetisation of old Rs 500 and Rs 1000 currency notes. According to the Reserve Bank’s order, a person can withdraw Rs 24,000 against a withdrawal slip or cheque subject per week, including ATM and bank withdrawals. However, the shortage of cash has forced banks to cap the withdrawal limit as per their fund availability to cater to maximum customers. While many branches are yet to get the new Rs 500 notes, notes of Rs 100 are in short supply and people are reluctant to accept Rs 2,000 notes.
Several banks and ATMs in Delhi have been shut or are lying defunct because of cash shortage and technical issues for the past few days. Kolkata saw long queues on Wednesday itself, even as people tried to avoid the pay day rush. The rush for cash on Wednesday hit boiling point, giving the West Bengal government and police a preview for what may happen on Thursday. In Gujarat, the union of state government employees had demanded that the state government pay the salaries of employees for the month of November in cash. But salaries of employees will be done as per regular practice of depositing the same in their bank accounts.
With many bank branches getting half of the cash required, on a daily basis, unions had earlier asked Indian Banks’ Association to advise banks to ask for police protection in branches to provide proper security to the staff.