Pay day today: Banks gear up for salary rush, many ATMs still dry
As today is the first pay day after the announcement of demonetisation by PM Modi on November 8, banks across the country have geared up to face massive rush for cash.
The RBI had assured the government that it is ready for higher withdrawals of cash in the next week, when most employers in the country pay salaries.
According to NDTV report, its sources said the RBI has told the Finance Ministry that all government presses are printing the new 500-rupee note to meet the massive demand for cash expected till December 7.
People will queue up at branches across the country to withdraw salaries amid the ongoing cash crunch following demonetisation.
Amid the chaos in banks, a large number of ATMs are still dry even 23 days after the government scrapped 500 and 1000 rupee notes earlier this month to crack down on black money.
Top government officials say special efforts are being made to pump in additional cash into banks to meet the heavy demand for currency notes on account of salary withdrawal.
The Reserve Bank has been asked to ensure adequate supply of new Rs 500 notes at banks and currency printing presses are working overtime to print them, the official said, adding that there is a lag of 21 days for printed notes to reach markets.
Bank officials fear heavy rush at the branches for a week as many ATMs are still not functional. It is reported that banks may have to lower the withdrawal limit as there is limited cash coming from RBI.
Bankers said the government’s move last week to provide Rs 10,000 in advance to non-gazetted staff may provide only a slight relief.