After 40-day pinch, Noida awaits cash-rich Monday
Nearly 40 days after the demonetisation of old ₹500 and ₹1,000 notes, residents in Noida are still waiting for adequate cash supply. They are expecting adequate cash supply to banks on Monday as the Reserve Bank of India (RBI) has flown in a cash supply of ₹5,000 crore to Uttar Pradesh.noida Updated: Dec 17, 2016 23:36 IST
Nearly 40 days after the demonetisation of old ₹500 and ₹1,000 notes, residents in Noida are still waiting for adequate cash supply. They are expecting adequate cash supply to banks on Monday as the Reserve Bank of India (RBI) has flown in a cash supply of ₹5,000 crore to Uttar Pradesh.
The supply will be sent to RBI’s Kanpur and Lucknow branches. Since Gautam Budh Nagar and Ghaziabad receive money from RBI, Kanpur, the additional amount will infuse a much-needed supply of new currency notes.
Residents were visibly relieved on hearing the news, after waiting in long queues of cash-strapped ATMs and banks.
“There were large queues as people want to exchange their old notes for new one. But, in the initial days following the demonetisation, there were only ₹2,000 notes available, for which procuring change was hard. I saw the new ₹500 note only 10 days ago. ATMs were not calibrated for the new notes and cash supply was low,” Commodore (retd) Lokesh Batra, a resident of Sector 25 in Noida, said.
In neighbouring Ghaziabad, the issue was worse as customers queued up outside bank branches and ATMs as early as 3am to get cash. A number of residents, who had planned weddings, also suffered as they could not withdraw ₹2.5 lakh cash as prescribed by the government.
Queues outside banks and ATMs have become a daily sight and small-scale businessmen and vendors continue to feel the pinch. Daily wage workers and factory employees have been worst hit.
“The basic issue which we faced was in pay our tailors, who come from across UP, Bihar and West Bengal as they did not have bank accounts. The government should have increased the limit of ₹50,000 to ₹2 lakh or more for labour intensive industries to allow us to make cash payments to our employees,” Bharat Bagga, an industrialist in Sector 2 of Noida, said.
However, the district lead bank manager, AK Singh, said that the supply is slowly improving as the district received nearly ₹125 crore from RBI, Kanpur on Saturday and another supply of nearly ₹220-225 crore is expected by Tuesday.
“This consists of lower denomination notes of ₹100 and ₹500, more than 50%, which will ease the flow in the market and help people get change. Further, the situation is improving in comparison to the earlier days, when the bank branches were facing a cash crunch,” Singh said.
He said that the fresh supply will also benefit neighbouring districts of Ghaziabad, Hapur and Bulandshahr as some cash will also be moved to these districts.