Bank unions threaten agitation on cash crunch issue | business news | Hindustan Times
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Bank unions threaten agitation on cash crunch issue

Reports of cashless ATMs have emerged from several states such as Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Telangana, Andhra and Karnataka.

business Updated: Apr 19, 2018 18:44 IST
The government has tried to blame the cash crunch on unusual spike in cash demand due to the ongoing farm procurement.
The government has tried to blame the cash crunch on unusual spike in cash demand due to the ongoing farm procurement.(HT/Photo for representation)

The All India Bank Employees’ Association (AIBEA) has threatened to launch an agitation on the cash crunch issue, its general secretary CH Venkatachalam said on Thursday.

“Mere statements will not help. Concrete, immediate action is needed to improve supply of currency notes,” Venkatachalam told PTI.

For the past few weeks, banks in many states, especially those in Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Telangana, Andhra and poll-bound Karnataka have been facing severe cash shortages, with many ATMs showing ‘no cash’ signboards. Because of this, bank employees are facing the wrath and anger of the public, said Venkatachalam.

While the RBI has claimed that there is enough printing and supply of cash in the system, the government has tried to blame it on the unusual spike in cash demand due to the ongoing farm procurement.

Blaming the government and the Reserve Bank for inadequate supply of currency notes, he said in fact the problem started with the decision to print Rs 2,000 notes after the note-ban announcement in November 2016.

“If the Rs 1,000-notes were withdrawn to prevent black money and cash hoarding, it is only obvious now that both have become easier with the Rs 2,000 notes,” he said.

Blaming the central bank for poor cash management that has led to the present shortage, he wondered if the RBI governor is to be believed where has all the money gone.

“The RBI governor has made a statement that adequate amount of currency notes are printed. But then where have these notes gone? Are they not to investigate? Are they not to ensure that banks have enough cash to meet the requirements of customers?” he asked.

He also alleged that even 16 months since the demonetisation, many ATMs are still not re-calibrated for the newly designed bank notes.