With the cash crunch continuing and another pay day having arrived, pressure is building up on banks as hundreds of thousands of customers are expected to approach them once the salaries and pensions are credited.
Bankers do not rule out a repeat of the scenes, of long-winding queues, frayed tempers and disappointed customers, witnessed earlier last month. Cash supplies to the banks remain less, a senior official of a public sector bank said.
The situation, however, was better compared to what it was a few weeks ago, he said, counting among the improvements availability of new Rs. 500 notes and more cash to bring several automated teller machines back to life. The footfalls at the branches have also started reducing over the last two weeks, primarily because deposits of the demonetised Rs. 500 and Rs. 1000 tapering off. Further, cash withdrawals are more in numbers in the days following the receipt of salaries. Customer complaints of not being able to withdraw Rs. 24,000 that they are permitted to in a week are not uncommon. Thus, more than 50 days after the demonetisation decision, rationing of cash by banks continues. A decision on how much is to be issued, depending on the supplies, is left to the branch managers.
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Unlike last month, the State government is yet to come with a notification advising the major public sector banks to issue a portion of the salaries/pension as cash. The banks are also waiting to see whether the Centre tweaks the cash withdrawal limits, which at present includes Rs. 2,500 from ATM per card/day, from January. Thus, no decision on setting up of additional counters and extended working hours, to manage the rush of customers, has been finalised.
Bankers say cash circulation has also improved, with the State Transport Corporation joining petrol pumps, restaurants and bars, in depositing daily collections.