Cash crunch continues, supply remains low on Thursday

Despite assurances from officials that the cash flow would improve on Thursday as the supply of notes was to be doubled, most customers returned disappointed.

Despite assurances from officials that the cash flow would improve on Thursday as the supply of notes was to be doubled, most customers returned disappointed.

Despite assurances, the cash flow to banks was not doubled on Thursday. (Burhaan Kinu/HT PHOTO)

Many had received their salary for November and had queued up to make a withdrawal. Residents said they were hopeful after media reports that RBI would increased supply of cash.

“This was false. We stood in the queue for one and a half hours at Oriental Bank of Commerce, but failed to get the amount we wanted. We argued with the branch manager but he said that there was a shortage of funds. We are in a crisis, as we are unable to arrange funds to manage daily needs,” KK Jain of Sector 34 said.

Dinesh Singh of Sector 33 said, “My son gave me a cheque for ₹17,000 and asked me to withdraw the money as he could not spare time due to his work. There was a long queue at ICICI bank branch, but I had to wait in line as many necessary payments such as salary to household help, recharging Mother Dairy card and so other trivial expenses are to be done in cash only. I think it will take few more months for the situation to be normalised. The situation at the ATMs was no different.”

Bank officials said that the cash crunch could last for an indefinite period.

A senior bank official of Union Bank said that the cash flow is very low and queues are only getting longer. “There is a huge responsibility on bank officials to give money to a maximum number of customers. People are not spending the money, but are keeping it at home, a type of hoarding, which is affecting cash flow,” the official said.

Lead bank manager of Gautam Budh Nagar, AK Singh, said, “The new currency notes of ₹500 are likely to reach banks soon. Cash flow was supposed to increase from Thursday, but I cannot tell you why it did not happen. I hope that the situation will improve soon.”