ATMs will go operational on Friday after two day-long break and stack Rs 50 notes for the first time apart from currencies of Rs 100
Banks ran out of cash after thousands of hapless customers rushed to bank branches to exchange old notes with new ones or withdraw money from the banks on Thursday, when banks reopened after the demonetisation of currencies of Rs 500 and Rs 1,000.
ATMs will go operational on Friday after two day-long break and stack Rs 50 notes for the first time apart from currencies of Rs 100.
Banks are working round the clock to put stock into ATM machines so that crowds at branches are reduced.
According to at least five branch managers of both private and public sector banks, it may take about a fortnight for things to settle down.
The demonetisation exercise is expected to flush in Rs 5 lakh crore into the banking system, according to estimates undertaken by banks.
The new Rs 2,000 denominated notes reached the bank branches only by mid-day but were insufficient to meet the demand.
Police had to intervene to control crowds in front of many bank branches. Customers were asked by police to form queues on the side of the road rather than get into bank branches. All banks were regulating the number of people entering branches to prevent trouble inside.
Chanda Kochhar, MD & CEO, ICICI Bank, said in a release, “Our ATMs have started getting operational for usage by ICICI Bank customers on Thursday. Non-ICICI Bank customers will also be able to use our ATMs, once the NPCI switch becomes operational. Customers will be able to withdraw money from ATMs to the extent permitted by RBI (Rs 2,000 per day in denomination of Rs 100. This is within the overall limit of Rs 20,000 per week).”
A report from the economic research wing of State Bank of India said, “RBI will have to first of all replace all the existing 500 denomination notes (volume wise: 15,707 million pieces as on Mar 2016) which were in circulation. Additionally, it will have to incur extra cost of printing 2,000 denomination notes. Only the replacement and introduction will lead to a cost of Rs 4,831 crore. This is besides the cost of printing that the RBI will incur for other notes.”
While some private sector bank branches were able to give cash only up to Rs 2,000, both withdrawal and exchange put together, for want of cash, some of the smaller public sector banks were able to cater only to their own customers due to the lack cash. Customers in many bank branches were asked to deposit cash and then withdraw the money.
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