KOZHIKODE: The agitation by customers at the SBI branch at Kainatty in Wayanad district on Monday highlights the acute cash crunch that north Kerala has been facing for a fortnight.
Led by the Karshaka Congress, the customers, frustrated at not being able to withdraw cash from SBI cash machines, marched on the Kainatty branch, the main branch in the district, and blockaded the bank.
They pointed out that ATMs had been dry for several days. After being assured that at least a few ATMs would be replenished soon, the agitators let the bank function. Though such agitations, reminiscent of the post-demonetisation period, are uncommon at other bank branches, customers in north Kerala are feeling the heat of cash crunch.
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Majority of ATMs have gone dry at a time when cash is in huge demand ahead of festivals this week.
Banking sources told The Hindu that the heavy fall in cash arrivals in the State in recent weeks had led to the cash famine. The RBI’s cash chests, which supply cash to banks across the State, held only small quantities of cash. The RBI supply has been far below the demand even as people’s need for currency has risen.
While cash crunch is being felt across the State, north Kerala districts are the worst hit mainly because they have far fewer cash chests than central and southern regions.
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The sources pointed out that banks had been informally told not to replenish ATMs, particularly outlying ones, in view of shortage of notes. This has prompted customers to withdraw cash from bank branches which are not able to meet the demand. However, a senior SBI official in Kozhikode claimed that a major reason for cash shortage was the truckers’ strike as it had disrupted transportation of cash from RBI offices to the chests. He expressed hope that the situation would improve in a few days.