The huge rush for exchanging old currency for new notes continued for the second day on Friday. Serpentine queues were seen in front of all banks and the police were requisitioned to regulate them.
As automated teller machines (ATM), which opened after two days, ran out of cash within a few hours. Several ATMs remained non-functional leaving the depositors stranded with no capital.
“I withdrew money from the ATM on Tuesday and got only Rs. 500 denominations. On Tuesday night, the Government declares it invalid. What am I supposed to do with that? This is an insipid move and has come without any warning. The government should have given time for exchange of notes before making them invalid,” said S. Sivamani, a techie.
The government had announced that people could withdraw cash from ATMs from Friday.
However, most ATMs were closed. Only two ATMs — UCO Bank and TMB — were working and people could withdraw only Rs. 2,000 which was the prescribed limit after great difficulty because of the mad rush.
Although the government has announced that old currency can be exchanged till December 30, people panicked.
A bank official said that certain technical glitches had been the cause for the ATMs being closed. Most ATMs are running out of Rs.100 notes as they have been using notes in lower denomination for exchange at the counters.
Crowds swelled at the Head Post Office on Rangapillai Street with people exchanging notes with higher denomination for the new Rs. 2,000 notes issued by the Reserve Bank of India.
Business was affected due to the demonetisation of Rs.500 and Rs.1000 notes. The arterial Jawaharlal Nehru Street and Mahatma Gandhi Road were deserted as business was dull.
A grocer said that very few customers turned up for purchases in the last two days because of shortage of cash. Although petroleum outlets and milk booths accepted Rs. 500 and Rs. 1,000 notes they soon ran out of change.
