Cash crunch: Banks struggling hard to cope with RBI’s raised withdrawal limits
Banks are focusing the ATMs located at busy areas in the cities for loading with cash since supply was still in shortage. But those in smaller towns are not being filled with cash adequately.
Banks and cash logistics companies are struggling hard to cope with the Reserve Bank of India’s raised daily withdrawal limit at ATMs from Rs 4,500 to Rs 10,000 as they are still running short of cash.
The RBI also increased the withdrawal limit for current accounts to Rs 100,000 per week from Rs 50,000 earlier. RBI, however, left the weekly ceiling of Rs 24,000 from the automated teller machines unchanged.
Many ATM machines went dry within a few hours after the RBI announcement on Monday, reported Hindustan Times. Banks are focusing the ATMs located at busy areas in the cities for loading with cash since supply was still in shortage. But those in smaller towns are not being filled with cash adequately.
“We are yet to get a grip on the situation. The increase in withdrawal limits is more than double, there is a possibility that a few ATMs located at not-so-busy areas do not have cash to dispense,” a senior bank official told Hindustan Times.
Most banks and cash logistics companies have decided to segregate ATMs based on their usage and location for loading of cash. Those near hospitals, shops or offices will be accorded priority for refilling of cash.
These machines are being provided with about Rs 9,000 crore per day against Rs 2,000-3,000 crore available to them in the early days of the demonetisation exercise. Before November 8, about Rs 13-14,000 crore was given to the ATMs for daily loading.
It may take another month for things to normalise, sources said.