A senior public sector bank official said branches are compelled ration funds because of cash shortage and that it is difficult to meet withdrawal
Reeling under shortage of currency stock, banks across the country have resorted to rationing of cash in order to handle the huge payday rush at branches.
Although various banks had claimed in the run-up to December 1 that adequate arrangements would be in place to tide over any cash crunch on payday, branches were seen rationing cash depending on their stock position.
Bank branches had to resort such extreme measures after finding it hard to meet demand, after the Reserve Bank of India removed a Rs 24,000 withdrawal limit per person, said a senior public sector bank official.
Some banks are disbursing only Rs 5,000 per person others are offering Rs 10,000 or Rs 12,000 per withdrawal.
Making matters worse, a large number of ATMs are still dry even 24 days after the government scrapped Rs 500 and Rs 1,000 rupee notes earlier this month to crack down on black money.
Despite recalibration, nearly 80 per cent of ATMs do not have cash, while people are struggling with the problem of smaller notes as the operational ones are typically dispensing only high denomination Rs 2,000 notes.
Yesterday, a top government official claimed that special efforts are being made to pump in additional cash into banks to meet the heavy demand for currency notes on account of salary withdrawal but the situation on the ground is very different.
RBI Governor Urjit Patel had earlier said the central bank is monitoring the situation on a daily basis and taking all necessary actions to "ease the genuine pain of citizens" with a clear intent to normalise the things as early as possible.
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