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
      1. 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
                  1. A
                    avi
                    Nov 10, 2016 at 10:11 pm
                    Gov't should have been better organized to help citizens,when taking this bold step.
                    Reply
                    1. D
                      Dash
                      Nov 10, 2016 at 1:42 pm
                      Except corrupt men and womwn,jihadis and jihadi sympathizers,everyone else is happy. lt;br/gt;Modi never does anything without immaculate planning. Corrupt politicians citing poor men must find some other excuse to criticze Modi. Jan Dhan accounts,PAN card issue wrt jewellery erc. are linked to this. Jihadi Mamata,Khujliwal,Pappu etc. have lost a lot after this move by the PM. Their frustration says a lot about their motives and integrity.
                      Reply
                      1. M
                        Mohammad Bin Tughlaq
                        Nov 10, 2016 at 12:09 pm
                        Will the new security features help a common man from detecting fake currency notes. The machines will detect but what about the ordinary individuals?
                        Reply
                        1. G
                          gopal
                          Nov 10, 2016 at 11:16 am
                          i have volunteered to help some poor people in my area to exchange their notes .lt;br/gt;most of them do not have bank accounts. they are mostly semi-literate .lt;br/gt;1 old woman had saved 40,000 in cash to pay for her son's college fees. lt;br/gt;lt;br/gt;what is the rationale of removing old 500 rupee notes and introducing new 500 and 2000 rupee notes ? how will that curb black money ?lt;br/gt;lt;br/gt;And no , the new 500 and 2000 notes will not have any micro-chip as was falsely claimed by some ignorant people on the internet.
                          Reply
                          1. K
                            K Chatterjee
                            Nov 10, 2016 at 8:27 am
                            "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."lt;br/gt;lt;br/gt;If educated bureaucrats make such ignorant statements, then how can common citizens like us trust govt.?
                            Reply
                            1. M
                              mathimathi
                              Nov 10, 2016 at 12:24 pm
                              After Peoples of poorer richer saving these new Rs 2000, Rs 500 and Rs 1000, in India may be become a black money again, if before 2019 AD. ban Jumla party maybe begin its "high-denomination banknotes" an another round of new Rs 2000 Rs 500 Rs 1000 original or counterfeit notes. ic ban govt ruling Hindustan.
                              Reply
                              1. M
                                mathimathi
                                Nov 10, 2016 at 2:04 pm
                                Why won't the Porkis print new Rs 2000. Is it an impossible guaranteed?
                                Reply
                                1. M
                                  mani
                                  Nov 11, 2016 at 1:32 pm
                                  Rbi helpline number for notes.exchange
                                  Reply
                                  1. P
                                    Parth Garg
                                    Nov 10, 2016 at 9:31 am
                                    If Income Tax is abolished there won't be any black money. Demonetisation is not the way.
                                    Reply
                                    1. B
                                      B.J.Ragini
                                      Nov 12, 2016 at 5:40 am
                                      Already there is circulation of fake 2000 Rs Currency notes in many parts of country. So I feel Modi Government has made a futile attempt by not supplying adequate notes to be circulated throughout the nation. By introducing 2000 Rs note corruption is going to spread more rapidly. Even before Modi could impose demonetisation, he should have atleast equipped banks adequately to supply new currencies to demanding public.
                                      Reply
                                      1. R
                                        Raman Vr
                                        Nov 10, 2016 at 6:39 am
                                        Rahul, Surjewala and Chidu have spoken hastily. Re 1000/- is coming back. The idea of this demonetisation exercise is to mop up the current stash of black money. Rahul et al ahould know that systems are being improved to curb black money generation. And even when in future when black money threatens our economy people will welcome another round of demonetistion. Where there is a will there is a way.
                                        Reply
                                        1. S
                                          sahil
                                          Nov 10, 2016 at 8:53 am
                                          This could at best be called action against counterfeit currency, however it does not sound brave enough it is being advertised as war against corruption. How is that when you take down a smaller note and launch bigger ones.
                                          Reply
                                          1. S
                                            sajeev
                                            Nov 10, 2016 at 7:14 am
                                            Is that wise ????? People with old notes will wait until then and p on the old notes to illiterate, poor and gullible people
                                            Reply
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