ATMs run dry as people make a dash for the cash
CURRENCY FRENZY Govt dues can be paid with old notes for 72 hrs more; banks say don’t have enough; two dead in rush
NEW DELHI: Millions of panicked people lined up outside banks and ATMs across India on Friday to exchange scrapped banknotes but chaos ensued for the second straight day with poor cash flow and no signs of immediate relief.
The government extended by 72 hours a window for using the old notes for specified purposes, including paying utility bills and taxes, and the Reserve Bank of India (RBI) said it had “enough cash” to meet the demand.
But the announcements did little to assuage the increasingly-desperate people struggling to meet their daily needs with little money at hand following a shock decision by the government to scrap the `500 and `1,000 banknotes in a bid to stamp out illegal cash.
Small business also appeared to suffer with street vendors selling ice cream, tea and snacks at iconic tourist locations such as India Gate disappearing overnight as people held on to their cash of smaller denomination.
ATMs reopened after two days but ran out of cash within hours. Banks struggled to handle the demand for exchanging withdrawn notes, raising tempers and sparking brawls with frustrated customers.
A couple from Italy said they walked more than three kilometres from their hotel in Paharganj in search of an ATM with cash.
Against an average of 125 daily transactions per ATM, about 800 to 1,000 people queued up at the kiosks on Friday, officials said.
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