Meenakshi Energy brings in micro ATMs to help villagers overcome cash crunch

Bedlam continued across India on Friday, nearly a month after the government demonetised high-value currency notes, as cash-starved banks struggled to service tens of millions of people desperate to withdraw their monthly salaries for December.

As soon as the salaries were credited, millions of employees began queuing up outside banks and ATMs across the country to withdraw cash to meet their monthly needs and pay their domestic helps, drivers and clear their monthly grocery and other bills.

Taking advantage of the weekend holiday, people queued up outside banks in earnest here on Saturday for withdrawing cash to meet daily expenses.

P Hampaiah, chief manager of Canara Bank’s Shivajinagar branch, said ATMs were not being reloaded as most people were withdrawing Rs 1,900 in order to avoid the Rs 2,000 denomination notes. Though the Finance Minister had instructed Treasuries and banks where Government payments were being made to give Rs 24,000 each to employees, several Treasuries had to limit this to Rs 10,000 or less. “Digital money transfer is good but we aren’t able to pay to milkmen, newspaper agents and vegetable vendors”, said Rashmi Mohanty, a house wife.

In Kerala, FINANCE Minister Thomas Isaac said many treasuries were running dry and couldn’t disburse salaries and pensions to most of almost a million people.

Banks ran out of CASH within hours of opening in most of the areas of the national capital.

Though RBI has already submitted lakhs of crores in various banks nationwide, the transfer of cash in ATMs might take some time along with opening more counters in the banks itself. Reports also say that some banks in major metros are receiving less than their cash requirement.

Meanwhile, private banks have been making arrangements to distribute funds in companies which have a salary account with them through mobile devices.

Public standing in front of ATMs and banks said that they were left with no option but to find and follow the vans to banks and ATMs as they are in dire need of the money. “The bank officials are not even issuing tokens yet saying they will do it only after the cash arrives”, Deepak Sharma, an IT employee said.

“Rs 500, Rs 100, and smaller currency notes are not seen in Bengal and many parts of the country”. When his granddaughter reached Bank of India’s Navyug Market branch in Ghaziabad, there was no money in the bank. They have been asked to ensure that cash is available in ATMs too. The idea is that all these payments should become electronic, using computers or mobiles, said two people familiar with the matter who did not want to be identified. They were unable to withdraw cash because of cash shortage.