Banks tie up expat transfers

ABU DHABI // More than a month after the Indian government withdrew 500 and 1,000- rupee notes from circulation, many expatriates say they have not been able to get remittances to their families.

Money has gone into their accounts, but dependents have been unable to make withdrawals because many banks have run out of notes in lower denominations. Ramesh Tandle, an Abu Dhabi fisherman from the western state of Gujarat, said: “My family has been facing huge problems back home due to not getting money from the bank. “My wife calls me and fights about it.

“I remitted 20,000 Indian rupees for my family’s expenses but they can’t withdraw it from the bank.

“My wife is seriously sick and she can’t walk because her leg is fractured. Now she asks me to come back to India.”

Not all bank customers are treated equally, Mr Tandle said. “We poor are facing the problem, but I have seen in the news that rich people brazenly stash huge sums of new currency when we don’t have money to buy foodstuffs and pay medical bills,” he said. The move by Narendra Modi’s government to remove the banknotes was announced on November 8 as a means, it said, of combating corruption and terrorism.

“My father-in-law and mother-in-law face tough times due to this. They have money in the bank but banks and ATMs are closed or showing ‘no money’ signs,” said Suresh Arumugam, from the southern state of Tamil Nadu.

He sent home 50,000 rupees two weeks ago for his in-laws, who are farmers.

Since last week they have been visiting the bank but have been unable to withdraw money.

“Now they are supported by my father, who is an accountant,” said Mr Arumugam, who has lived in Ras Al Khaimah for more than four years.

The banking crisis has had an adverse effect on the poor because the wealthier and better educated have been using debit and credit cards and conducting digital transactions, so the new rules have not had a major impact on their purchasing power. Dilip Kumar, from the southern state of Kerala, said: “There is no problem at all. My wife withdrew 10,000 rupees from the bank after I remitted 50,000 for family expenses.”

His wife has been using debit and credit cards for a long time and so she has felt little impact.

“There is little problem when it comes to buying vegetables and fish,” the Abu Dhabi resident said.

When it came to places where she cannot use cards, Mr Kumar said his wife gives the shop 2,000 rupees, which is used as credit for a few days.