Banks gearing up for second round of pay day rush

Banks are gearing up to meet the second round of pay day rush as several organisations give salary to their employees on the seventh of every month.

Many bank branches are still facing cash crunch and are rationing withdrawals much below the Rs 24,000 allowed by RBI per week.

Long queues were witnessed at many places as majority of ATMs are running dry because of withdrawal rush.

According to bankers, second pay is due tomorrow which would lead to increase in queues at branches for withdrawal and banks are making arrangement to meet the demand of people.

The bank is making arrangement at those branches where there would be withdrawal pressure, Axis Bank executive director Rajesh Dahiya said.
 

With regard to ATMs, he said, although about 95 per cent ATMs have been recaliberated, there is cash shortage due to logistic issue. ATMs are fed only once a day.

The pressure on banking system would continue for some more time.

According to bankers, the salary rush would continue for another 7-10 days.

Salary and pension rush would be there for the next 5-7 days, SBI Managing Director Rajnish Kumar said, adding that rationing at branch level is being done to cater to cash needs of the larger number of customers.

Some banks are disbursing only Rs 2,000 per person while those having better cash availability are offering Rs 10,000-12,000 per withdrawal against specified limit of Rs 24,000, bank officials said.

Many banks made 'SOS calls' to RBI for additional cash for the first week of December to meet the initial rush of people, already fatigued standing in queues to exchange/deposit old notes and make limited withdrawals over the past three weeks after the demonetisation was announced on November 8.

Meanwhile, bank unions are demanding that RBI should take steps to supply adequate cash to all banks and details of notes supplied to banks "should be announced publicly by RBI on a daily basis".

All ATMs should be made functional immediately and protection should be given to bank employees and officers from the public pressure, they suggested.