Pay day chaos looms as banks run short of notes
Bank officials say people may not be able to make allowed withdrawals
NEW DELHI: This payday could become Judgement Day for the demonetisation drive, with banks running out of notes and people scrambling already for cash to pay salaries and bills.
The cash crunch-hit people and banks are bracing for more pain on December 1 when the government, companies, and domestic employers pay salaries to their staff. Banks and ATMS are running on nearly 40% less cash than they would need. Already banks are refusing withdrawal of ₹24,000 and ATMS dispensing only ₹2,000 notes.
“This payday will turn into paindayasbankswillnotbeabletomeet the demand simply because the system does not have enough cash. This will restrict people in withdrawing their salaries and even pensions,”saidchvenkatachalam, general secretary, All India Bank Employees’ Association.
Such is the cash shortage that officials at a Bank of India branch in Ghaziabad came forward to arrange the funeral of 74-year-old Munna Lal Sharma, who died of cancer on Tuesday morning.
Sure, the bulk of the salaries get creditedtobankaccounts.butmost of them have a cash component. In the case of some, such as domestic help, the entire payment is in cash. And those who get salaries electronically usually line up at ATMS to withdraw money for expenses, suchasgreengrocer’sbills,andsundry purchases. Sources said the RBI is monitoring the situation, but bankers do not expect much improvement in the next couple of days. The RBI did not respond to an email from HT.
“Most people want to withdraw ₹24,000, the cap set by the government for withdrawal in a week, as they have to pay their drivers and domestic helps. But we exhaust the cash in a few hours as we are not getting enough supply,” said a bank official.