Banks closed today for Guru Nanak Jayanti amid chaos over currency ban
Banks will remain shut on Monday on account of Guru Nanak Jayanti, suspending the panic runs for money and giving bank officials relief for a day, almost a week after the government demonetised Rs 1,000 and 500 notes.business Updated: Nov 14, 2016 11:04 IST
Banks will remain closed in many parts of the country on Monday on account of Guru Nanak Jayanti, suspending the panic runs for money and giving bank officials relief for a day, almost a week after the government demonetised Rs 1,000 and 500 notes.
Chaos swamped banks -- both public and private -- as people queued up to exchange their demonetised money for valid denominations, including the new Rs 2,000 rupee note.
The rush remained over the weekend as banks functioned to facilitate the government’s move to recover the high-value banknotes that make up about 86% of the Indian currency currently in circulation. (According to data from the Reserve Bank of India, Rs 500 notes amount to Rs 7.85 lakh crore, while Rs 1,000 add up to to Rs 6.33 lakh crore.)
People scrambled to cash in on Sunday as well, given the public holiday on Monday. Security was increased at banks and near ATMs as tempers ran high among the dozens who waited, in some cases upto an hour, to withdraw money. However, due to the rush, many ATMs ran out of cash, leaving dozens of others without money.
In the national capital alone, as many as 3,400 paramilitary and Delhi Police personnel were deployed with 200 quick reaction teams to handle anxious crowds swamping banks, post offices and ATMs.
There was some respite in terms of cash liquidity as the RBI introduced the new series of Rs 500 on Sunday evening. Many businesses have been unable to tender change for the new Rs 2,000 note that was brought into circulation last week.
However, the RBI, in a statement, assured the public of enough reserves of small denominations at banks, and urged people not to hoard cash.
Banks have been working extended hours for the past five days as hundreds have turned up to exchange and/or deposit their demonetised notes.