After cash crunch, Rs 2000 notes are new headache

While the cash crunch has abated to some extent with more ATMs becoming functional, people in Indore are now faced with a new problem - finding change for the Rs 2,000 notes being dispensed by banks and public sector ATMs.

While the cash crunch has eased to an extent with more ATMs becoming functional, people are now faced with a new problem–finding change for the new 2,000-rupee banknotes being dispensed by ATMs and withdrawn from banks.

Many State Bank of India ATMs in Indore are now dispensing only Rs 2,000 notes. (Shankar Mourya/HT photo)

A number of ATMs of the State Bank of India (SBI) across the city are now dispensing only 2,000-rupee notes, with the automated teller machines displaying a message saying “‘unable to dispense cash” if an amount smaller or larger than Rs 2,000 is entered for withdrawal. Banks too are issuing only 2,000-rupee notes for over the counter withdrawal.

ATMs are being filled with Rs 2,000 notes to ensure that the teller machines dispense more cash so the queues become shorter, an official at a SBI branch, who spoke on the condition of anonymity as he was not permitted to speak to the media, said.

“Lower denomination 100-rupee banknotes constitute only 8% of total bills in circulation…and it is logistically impossible to fill functioning ATMs with only 100-rupee notes,” he said.

“It will be very difficult to get a change for 2,000-rupee note unless the bill crosses Rs 1,500,” said Purvi Ramani, a housewife.

There are long queues at some private bank ATMs that are still dispensing 100-rupee banknotes. The only relief for people is that they can use the old 1,000 and 500-rupee banknotes for paying utility bills, taxes and fees as well as purchases from co-operative stores until November 24.

Cash crunch hits movie theaters

Multiplexes and single screen cinemas saw lower than expected footfalls on Friday, the first day of movie releases as people are still facing cash crunch.

Multiplexes, however, fared relatively better as people use more cash to buy tickets in single screen cinemas. “The move will promote cashless ticket booking as more than 50% of tickets are sold online or through cards,” Carnival cinema’s Rajesh Mangal told HT.