LIVE: Banks run out of cash, shut down early

Bank branches and ATM centers saw long, serpentine queues extending to roads today morning. Delhi Police made elaborate arrangements to avoid any untoward incident.

By: Express Web Desk | New Delhi | Updated: November 10, 2016 5:00 pm
banks1 Customers outside a SBI bank in Delhi. (Source: ANI)

All denominations of currency notes, beginning with Rs 1000 notes, will be reintroduced with enhanced security features in the coming months, Economic Affairs Secretary Shaktikanta Das announced Thursday. The fresh notes will come with a new colour combination and design, he said. Finance Minsiter Arun Jaitley, who was also present at the press conference, said that banks would remain open over the weekend to facilitate the smooth exchange of the scrapped Rs 500 and Rs 1000 notes. Saying that the demonetisation of Rs 500 and Rs 1000 would impact small purchases for a few days, till there is adequate currency, Jaitley said it will be beneficial in the long run.

WATCH: Serpentine Queues Outside Banks To Exchange Rs 500, Rs 1,000 Notes

Jaitley clarified that deposits within the exemption limit won’t come under scrutiny, but those making large deposits of undisclosed money will have to face the consequences. “Deposits within exemption limit can be made without any questions being asked, large amounts will face consequences. It is only those with large amounts of undisclosed money who will have to face the consequences under existing laws,” said Jaitley.

Chief Economic Advisor Arvind Subramanian said the exchange of bank note should be seen as a transfer of “unaccounted wealth from private sector” to the public sector, which will boost economy: CEA Arvind Subramanian.

Meanwhile, as banks and ATMs reopened Thursday, two days after RBI demonetised Rs 500 and Rs 1000 note, people queued up across the country to exchange the scrapped notes. Bank branches and ATM centers saw long, serpentine queues extending to roads today morning. Delhi Police made elaborate arrangements to avoid any untoward incident. There was heavy police presence outside banks, petrol pumps, at Kendriya Bhandars, Safal centres, pharmacies, hospitals, Mother Dairy booths among others.

WATCH VIDEO: People Que Up At Banks To Exchange Rs 500 & Rs 1000 Notes: Here’s What They Said

Speaking to news agency ANI, Minister of State for Finance Arjun Meghwal said: “There is no need to panic; Govt is trying to make available all resources as per demands.”

State Bank of India managing director, Arundhati Bhattacharya said customers can withdraw up to Rs 4000 from ATMs and Rs 10000 from bank counters. There is no limit on the amount one can deposit, she said. Customers wishing to exchange their Rs 500, Rs 1000 notes have to submit a form and prove their identity. The RBI has announced December 30 as the deadline for phasing out all the scrapped notes from circulation.

Meanwhile, Patna witnessed chaotic scenes outside banks due to the limited availability of forms and most customers were made to wait for 2 hours. “We are standing here for last two hours, bank officials are creating nuisance and not allowing us to enter inside,” a customer told ANI.

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  1. A
    Aayushi
    Nov 11, 2016 at 11:04 am
    Poor people can't even get the 4000rs exchanged as the banks don't have currency till their number comes .... One poor person can get the 4000rs exchanged only once till 30 December as told by the bank employee as second time the system isn't accepting it ... Really the worst harment possible ... poor people who don't have bank accounts are helpless... I'm myself cudnt get anything exchanged in the past 3 days ... I'm staying in a town in jharkhand and this is the situation in small towns ...
    Reply
    1. N
      Nathan
      Nov 11, 2016 at 12:37 am
      EVEN THOUGH IT IS A SWIFT AND GOOD MOVE TO UNEARTH BLACK MONEY AND PUT A CHECK ON FUNDING OF TERRORISTS, THE DEMONETISATION ANNOUNCEMENT IS A BOLT FROM THE BLUE. THE EFFECT OF DEMONETISATION ON CURBING BLACK MONEY AND CIRCULATION OF FAKE CURRENCY WILL BE SEEN IN COMING MONTHS. THERE SHOULD HAVE BEEN PREPARATIONS TO FULLY EQUIP THE BANKS TO MANAGE THE SEA OF CUSTOMERS WHO EXCHANGED 500 AND 1000 CURRENCIES. MANY OF THE ATMS EITHER DO NOT HAVE MONEY OR DO NOT WORK PROPERLY. THEY SHOULD BE REPLACED IMMEDIATELY. KUDOS TO PRIME MINISTER MODIJI.
      Reply
    2. S
      SubbuI
      Nov 10, 2016 at 3:48 pm
      VERY POOR CRISES MANAGEMENT BY GOVERNMENT AND BANKS . HAVING TO STAND 3 hrs IN SHELTER LESS QUE GOT ONLY TOKEN FOR TOMMOROW.MY DOCTOR DOES NOT GIVE ME APPOINTMENT WITH OUT MONEY. MY PM IS TUGHLAQ WHO DO WHAT COMES IN HIS MIND.NALAYAK NMODI MUST STAND IN LONG QUE AND SUFFER LIKE US ONE DAY
      Reply
      1. S
        SubbuI
        Nov 10, 2016 at 8:12 am
        THAT IS GREAT.1000RS ABOLISHED FOR 3 DAYS AND SHALL BE REINRODUCEDlt;br/gt;EXPECTING A TUGHLAQ TYPE MORE ANNOUNCEMENTS , MAY BE 2000 RS CANCELLED AND 5000 RS INTRODUCED. YEH HAI INDIA. NALAYAK NMODI INDIAlt;br/gt;TUGHLAQ MODI RAJ.DICTATOR MODI INDIA.
        Reply
        1. V
          Vinayak
          Nov 10, 2016 at 7:42 am
          No wonder, Congies and Commies, who support terror elements, oppose the government ban on higher denomination notes, as this breaks the backbone of terror organisations.
          Reply
          1. A
            alam
            Nov 10, 2016 at 11:58 am
            82 CRORE Indians ARE PURE FARMERS AND MOSTLY WITH SMALL SAVINGS. MOST OF THEM WILL NOT ABLE TO REACH THE BANKS TILL DEAD LINE AS MANY HAVEN'T SEEN BANK FACE IN THERE LIFE . GOD KNOW WHAT WILL HAPPEN TO THERE SAVING . AND THIS IS FOR SURE FEW HAVE DO SUICIDE WHEN THEY WILL COME TO KNOW THERE SAVING IS NOW ZERO AFTER DEAD LINE
            Reply
            1. A
              alam
              Nov 10, 2016 at 12:01 pm
              Indian govt should not forget that farmers are back bone of our economy though industrialization rate is increasing . More then 80 % Indians are farmers , this has to be consider irrespective of white or black money which the largest community (farmers) of Indian doesn't knows.lt;br/gt;lt;br/gt;But who cares ...................
              Reply
              1. J
                Jagat Narain
                Nov 11, 2016 at 12:31 pm
                Many a Canara Bank branches not exchanging currency note of Rs500- and Rs1000-lt;br/gt;as per RBI/GOI directives.They are insisting that notes must be deposited into the lt;br/gt;account and than withdrawn. I don't know to know to whom I should make a complaintlt;br/gt;when even a complaint made to MD of the bank is falling on deaf years. Can any bodylt;br/gt;guide me in the matter. Regards
                Reply
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