Noida: 310 banks run out of cash because of ‘unexpected rush’
Banks had expected roughly ₹30 to ₹35 lakh distributions on Wednesday and for that they had arranged ₹40 lakh to ₹45 lakh and that too proved less.noida Updated: Dec 08, 2016 12:24 IST
When lakhs of employees of the private sector received salaries on the first of the month, many made a beeline to the banks early in the morning to withdraw cash to purchase items of daily needs. However, many returned disappointed on Wednesday, which was a payday for factory workers.
There are over 8,000 small, medium and big factories in Gautam Budh Nagar with over 1.5 lakh employees.
Gautam Budh Nagar lead bank manager AK Singh said most of the banks faced shortage of cash , including major banks, and it will continue so for next few days.
Banks claim that they had arranged almost double the amount that they usually receive. There are 310 banks in the city and more than 600 ATMs.
“But the crowds were beyond our expectations. We had expected roughly ₹30 to ₹35 lakh distributions on Wednesday and for that we had arranged ₹40 lakh to ₹45 lakh and that too proved less. We have requested for ₹50 lakh now or more at least for the next three or four days,” said Purushottam Sharma, branch manager of Union Bank of India, Sector 6.
The people who came to withdraw money work in industries, malls, security agencies, shops and showrooms.
Shashi Shekhar, who works at a private factory at Sector 59, said, “I could get only ₹5,000, while I needed ₹15,000.”
The restrictions on withdrawal is that one can withdraw ₹24,000 a week from their saving accounts and ₹50,000 from current accounts. The bank system will reflect if anybody tries to bypass the rules.
“This will help in catching frauds while withdrawing money beyond limited amounts. I spoke to the branch managers of various banks and they all said crowds that turned up to withdraw money were much beyond their expectations. Although banks have extended withdrawal counters and put additional staff beside additional amounts, all our efforts are failing,” Singh said.
Meanwhile, some people alleged that branch managers and other staff favouring people to withdraw money.
Vipin Malhan, president of Noida Entrepreneurs Association (NEA), said, “We have written to the centre in this regard, as we have noticed some people have enough new currencies while a majority continues to reel under crisis.”
However, the lead bank manager refuted the allegations.