Hyderabad: Impact of demonetisation seems to be becoming an eternal phenomenon. A majority of the Bank branches and ATMs in Hyderabad have gone dry in the last few days and the trend may continue in the coming week as well. They are flashing `no cash’ signs on them while others had been shut down.
The reasons are multifaceted- deposits in banks have come down as people have started hoarding either to avoid frequent withdrawals or transaction fees levied on them, enough money is not coming from their head offices and the Reserve Bank of India.
All India Bank Employee Association (AIBEA) general secretary C H Venkatachalam told Telangana Today, “There has been a cash shortage across India for almost a month. The severity is however varying in each city. Failure in carrying out recalbiration could be also be one of the major reasons.”
“We are not getting the required cash from the Reserve Bank of India,” said an official of State Bank of India. He said the situation has been the same for over ten days now. The situation will take about week more to normalise, he said.
The private sector banks too are facing the same problem. “There is no cash. We are not in a position to tell when the situation will improve,” said an official of Axis Bank. He said the situation would aggravate in days to come as the withdrawal limits are off.
He said the cash flows from Reserve Bank have dried up. He, however, did not specify the reasons for the squeeze. He merely said that elections in the five states could be one of the reasons but there is no certainty on the reasons, he said adding that there is cash at the bank level and the severity will be a short-lived one.
According to Rakesh Reddy Dubbudu, co-convener, National Campaign for People’s Right to Information, there is no information that is made public on how much cash is being assigned by the RBI to each State. Also, information about cash dispenses to each bank is also not made public. “When the demonetisation was underway, we have sought information on the basis cash was dispensed to each State but it was not available,” he said.
A Canara Bank official said, “There are no deposits for many days. Even we don’t have enough cash to dispense in the branch. That’s why we have closed the ATM. There is no money in the banks and RBI is not supplying enough cash.”
When asked why there is no cash in ATM of a Standard Chartered Bank, an official said, “There is no much problem with the cash. Cash is there. We are trying to fill in the ATM machines as frequently as possible. We should fill cash by the end of the day.” However, the security guard of the Bank shared a different observation, saying there has been very little cash in the last one week, as there is no adequate cash in the bank.