Demonetisation: As people wait, banks run out of money

Sources have told The Indian Express that the RBI has made adequate arrangements for pay day and there will be extra cash flow over the next few days.

By: Express Web Desk | New Delhi | Updated: December 1, 2016 4:13 pm
demonetisation, payday, pay day, banks, ATMs, narendra modi, congress, salaries, banks with cash, old Rs 500 note, new Rs 2000 note People queue up outside a bank to withdraw cash in Gurugram. (Source: PTI)

It is ‘pay day’ today and banks across the country are experiencing an increased rush in addition to the ongoing cash crunch. But the RBI has made adequate arrangements for pay day and there will be extra cash flow over the next few days. “From Wednesday evening there will be excess release of cash for five-six days,” the source said.

The withdrawal limit from ATMs continues to remain at Rs 2500 per day — an amount that will not suffice given that the first week of the month is when most payments are to be made.

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 have been shut or are lying defunct due to the cash crunch.

People stand outside a bank at Delhi Cantt to make withdrawals on Thursday. (Source: Express photo by Renuka Puri) People stand outside a bank at Delhi Cantt to make withdrawals on Thursday. (Source: Express photo by Renuka Puri)

The demonetised currency notes of Rs 500 and Rs 1000 can only be used as payment for airline tickets and petrol pumps till tomorrow as opposed to the earlier announced date on which was December 15.

PM Modi’s assertion of demonetisation move to help India move towards being a cashless economy has received mixed responses. As the queues at ATMs and banks seem to be never ending several have expressed their disapproval of the move.

People queue up outside a bank in Mayapuri Bank. Express photo by Renuka Puri People queue up outside a bank in Mayapuri Bank. Express photo by Renuka Puri

In Greater Noida, villagers at Bilaspur blocked the Noida-Sikandrabad road, affecting traffic for more than an hour. This was reportedly after banks at Mandi Shyam Nagar in Dankaur displayed a ‘no cash’ notice. When villagers reached the banks to withdraw money, they were left agitated. Delhi also witnessed some tension when a minor scuffle broke out among people waiting in line to withdraw cash outside Bank of India in Chitaranjan Park, New Delhi.

People queue up outside at HDFC Bank at Delhi Cant on Thursday. Express photo by Renuka Puri, 1st Dec. 2016. People queue up outside at HDFC Bank at Delhi Cant on Thursday. Express photo by Renuka Puri

The situation seemed no different in Kerala. Banks and state treasuries in Kerala have been witnessing heavy rush since morning with people queuing up to withdraw salaries and pensions. State Finance Minister Thomas Issac said 42 treasuries in rural areas didn’t received any cash till 11.30 AM. The government had asked RBI to release Rs 153 crore for distribution of salaries and pension through the 222 treasuries in the state, but had received only Rs 75 crore till noon, he said adding treasuries in the urban areas were not facing much of a problem.

Long ATM queue outside Canara bank in Chittaranjan park, south Delhi. (Source: Express photo) Long ATM queue outside Canara bank in Chittaranjan park, south Delhi. (Source: Express photo)

Many took to Twitter to express their frustration of having no physical and being unable to withdraw money.

Bollywood actor Anil Kapoor took to twitter to show his support of the demonetisation move.

As always Twitterati never fails to amuse with it ability to see humour in every situation. Bollywood actor Jaaved Jaafri tweeted the following:

Many bank branches have only received half the cash required.