Cash crunch: No respite from long queues at banks, ATMs

NEW DELHI (AP) – India’s government said Tuesday it will use indelible ink to mark the fingers of people swapping scrapped currency notes at banks as authorities struggle to deal with the bedlam caused by the sudden demonetizing of the country’s highest-denomination bills.

After withdrawing 500 and 1,000 rupee notes – which make up for 86 percent of the total currency in circulation, the government had on November 8 set a cash withdrawal limit of Rs 2,000 per day from ATMs.

A New Delhi businessman with connections to underground currency traders said it was still fairly easy to exchange the withdrawn currency – as long as you’re willing to pay twice the legitimate exchange rate to get rid of the old notes.

Indians have until November 24 to exchange old notes for legal tender, up to a limit of 4,500 rupees, per card, just over £50.

Besides the announcement of micro-ATMs and removal of any transaction fees for using other bank’s ATMs, Govt. also announced several new measures to help the common man with dealing the currency crunch.

How long can we afford to be in the queue to get money which we toiled to earn.

Expressing their apprehension that the two lakh ATMs in the country including the 35,000 machines located in rural areas would start dispensing cash in another three weeks time, the unions said the machines have to be recalibrated with proper cash trays.

More than half of an estimated 9.3 million trucks under the All India Motor Transport Congress have been affected as drivers abandon vehicles midway into their trip after running out of cash, according to Naveen Gupta, secretary general of the group.

The finance ministry revised the cap on bank withdrawals on Sunday while advising similar changes to ATMwithdrawals less than a week after the government’s demonetisation of 1000 and 500 rupee notes left people in a tight spot. Currently, they are mainly dispensing Rs 100 notes.

The workload has dropped to nearly 50% that’s a sure sign that people are assured they’ll get the money at their own convenience, she said. Government hospitals, railways and utility providers have been told to honor the old notes until November 24.

The ATM limit has also been increased to 2,500 rupees, however it will be disbursed only by the re-calibrated ATMs.

On Monday, many bank branches were closed, except in southern states, for Gurunanak Jayanti.

Branches in the Southern India witnessed a huge rush of people for replacement and withdrawal of currency as weekly limit for withdrawal has been raised to Rs 24,000.