Hindustan Times ST (Jaipur)
Several states faced with cash crunch woes
BANKS ALSO WANT TO ENSURE THAT THEY HAVE ENOUGH CASH AT THEIR BRANCHES TO SERVICE THEIR OWN CUSTOMERS
Several states such as Maharashtra, Andhra Pradesh, Gujarat, Karnataka and Kerala are once again facing the brunt of a cash crunch.
Banking sources said the Reserve Bank of India (RBI) is supplying only about 25% of the stipulated cash required for ATMs.
Therefore, banks and cash logistics companies are finding it difficult to replenish the ATMs located in these states.
The situation however, is not as bad in Delhi, Uttar Pradesh and other parts of north India. Even West Bengal and Orissa have adequate cash supply, bankers said.
The cash crunch could aggravate in many parts as the country gears up to observe “Good Friday” – a national holiday on the 14th. Though banks will remain open on Saturday, they will be closed on Sunday and this may make things worse.
“The cash situation has stabilized considerably but once again problems are coming up, cash supply is thinning …complaints have started pouring in,” NSG Rao, the secretary of Cash Logistics Association said.
Sources, however, added that the situation is expected to stabilise in the next two weeks.
“It could be because of the state elections..typically more cash is supplied to states which go to polls to ensure that there is no law and order disruption due to any shortage of any kind…we are expecting things to come back to normal within the end of the month,” a senior executive of a large private sector bank, told Hindustan Times.
With the RBI lifting all restrictions on cash withdrawals on savings bank accounts, banks also want to ensure that they have enough cash at their branches to service their own customers. Besides, many customers, are shifting back to cash.
After the government announced the demonetisation exercise on November 8, 2016, 86% of the money in circulation in ₹500 and ₹1,000 currency notes was withdrawn.