Banks and their ability to cater to customer demands for smaller denomination currency notes will be put to test when branches open on Thursday, a day after the Government decision to demonetize Rs. 500 and Rs. 1,000 currency notes.
While both State Bank of Hyderabad and Andhra Bank did not issue any statement, till late on Wednesday, regarding how they plan to handle the rush, sources in the banking industry said that ever since the Government announcement on Tuesday evening efforts are under way at various levels.
Topping the list of priority is transporting cash of lesser denomination notes, especially Rs. 100 and Rs. 50, to all the branches.
Staff shortage
The likely surge in the footfalls would also turn the spotlight on the lean staff structure adopted by the banks at many branches. Bank officials admitted that customer handling would not be easy on Thursday. The rise in use of alternative channels such as ATMs and online banking services has led to considerable reshuffle of staff from the counter to other areas.
While redeployment of staffers from specialised branches is one option likely to be exercised, the other is to engage retired employees something that State Bank of India has decided on.
Extended working hours and remaining open on November 12 (second Saturday) and 13 (Sunday) are some other measures that are likely to benefit the customers.
“Some of the retired staff will be engaged on temporary basis and the local branch manager can do so depending on the need for additional counters, especially those to exchange the notes,” said VVSR Sarma, president of All India SBI Staff Federation.
High volumes
A leader of the Andhra Bank officers union said apart from lack of adequate manpower the situation is likely to be compounded by the increase in the number of bank accounts in view of opening of Jan Dhan accounts.
Apart from the exchange of the demonetized currency notes, the banks are likely to see more demand for cash deposits. BEFI general secretary (AP and TS) P. Venkataramaiah said, much would depend on sufficient availability of the lower denomination currency notes.
While Mr. Sarma said that the employees had been advised to be “cool and calm”, Mr. Venkataramaiah opined that bank customers were bound to face some inconvenience in the first few days.
