Demonetisation- Payday woes: Banks fear shortage of cash

With many ATMs still unable to dispense cash and displaying 'Out of Order' boards, people are forced to queue outside banks.

Written by:
Subscribe to Oneindia News

Citizens are back to queuing outside ATMs and banks and bankers now have a new worry. With the cap on withdrawal relaxed and RBI scrambling to meet the demand for new notes, bankers fear running short of cash to dispense.

"Our biggest worry is managing cash. While the cash flow has been smooth so far it is unlikely to continue being so. Salaried employees are already making a beeline and ATMs are running out of cash fast which means that lines outside banks will extend", said a bank manager.

Bank

While RBI maintains that its printing presses are working to full capacity, the gap between current cash liquidity in the economy and cash drained out after demonetisation is huge.

[Also Read: Demonetisation- Payday woes begin at banks & ATMs]

With many ATMs still unable to dispense cash and displaying 'out of order' boards, people are forced to queue outside banks. While centralised banks are banking on constant flow of cash from RBI treasuries to keep them off the hook, privatised banks are heavily dependent on electronic banking by their customers to avoid cash crunch.


OneIndia News

Please Wait while comments are loading...