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Rediff.com  » Business » Pay day rush: Banks resort to rationing of cash

Pay day rush: Banks resort to rationing of cash

December 01, 2016 15:05 IST

Some banks are disbursing only Rs 5,000 per person while those having better cash availability are offering Rs 10,000 or Rs 12,000 per withdrawal

Reeling under shortage of currency stock, banks across the country have resorted to rationing of cash in order to handle the huge pay day rush at branches.

Although claims were made by various banks that adequate arrangement would be in place to tide over cash crisis on pay day, branches are seen rationing cash depending on their currency stock position.

Branches are compelled to resort to rationing because of cash shortage and it is difficult to meet the withdrawal limit of Rs 24,000 per person set by the Reserve Bank, said a senior public sector bank official.

Some banks are disbursing only Rs 5,000 per person while those having better cash availability are offering Rs 10,000 or Rs 12,000 per withdrawal.

Making matters worse, a large number of ATMs are still dry even 24 days after the government scrapped Rs 500 and Rs 1,000 notes earlier this month to crack down on black money.

Despite recalibration of nearly 80 per cent of ATMs do not have cash, while people are struggling with the problem of change as the operational ones dispense mostly high denomination Rs 2,000 notes.

On Wednesday, a top government official claimed that special efforts are being made to pump in additional cash into banks to meet the heavy demand for currency notes on account of salary withdrawal but situation on the ground is still a far cry.

RBI Governor Urjit Patel had earlier said the central bank is monitoring the situation on a daily basis and taking all necessary actions to "ease the genuine pain of citizens" with a clear intent to normalise the things as early as possible.

Photograph: PTI Photo

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