A presumable cash shortage that is forcing people to spend precious time and energy searching for functional ATMs across the twin cities has left bankers baffled.
What has happened to the fresh supply of currency notes pumped into circulation in the wake of demonetisation, senior bankers sought to know, suspecting whether a hoarding of a different kind is taking place.
While agreeing that more remittances by the RBI could certainly help, they pointed out that the turnover was less. “It is a one way traffic,” a senior official of the State Bank of India said, adding that customers demand for cash exceeded deposits.
The cash crunch is evident not just by way of ATMs running out of stock — some of the kiosks remain closed — but also in the form of banks urging customers to withdraw only up to a limit. A few bank branches often resort to requesting retail business customers to deposit cash, a leader of the Andhra Bank Officers Union said.
Cash flow
Sources at the erstwhile State Bank of Hyderabad said cash flow in branches that have petrol bunks and wine shops as customers is high, while for others it is a struggle. The uncertainty about cash availability was making people withdraw cash and keep the money at home.
Though Reserve Bank of India officials in Hyderabad refused to comment, last month Regional Director R. Subramanian had told a meeting that as on March 14, over 10% of the 8,462 cash dispensing machines in Telangana were inactive. The apex bank had supplied ₹1.35 lakh crore to Telangana and Andhra Pradesh post the November 8 demonetisation announcement, with ₹85,000 crore — or about 60% — in the form of fresh currency notes.
