Hyderabad: Limit off, rush draining ATMs

Hyderabad: There is no end to the hardships being faced by the public in accessing their own money in banks. Following the lifting of cap on withdrawal of cash from banks by the Reserve Bank of India, the number of withdrawals has increased in the last three days and banks in the city and the currency chests of major banks are empty.

Some big branches of Andhra Bank, State Bank of Hyderabad and Canara Bank have been telling customers to come in the afternoon and to withdraw smaller amounts.

An official from a big branch of SBH in the city said that the bank would see deposits of Rs 40-50 lakh per day before demonetisation. That has fallen to Rs 2-3 lakh per day since the currency crisis began in ATMs 20 days ago.

“The city has 1,000 branches of all banks, private and public sector, of which 250 are under scale- 4&5 which are considered big branches. All big branches are facing a situation of lower deposits and higher withdrawals. We are planning to ration the distribution of money. We are providing up to Rs 25,000 to regular customers seeking withdrawals of Rs 2 lakh and more. We are providing Rs 5,000 to Rs 10,000 to other customers,” he said.

Secretary of the Bank Employees’ Federation, M.S. Kumar, said that the currency supply from the RBI has been poor in the last 20 days. “The problem is with big branches; the functioning at small branches is normal. Except current account holders like chit fund organisers and business persons, very few with savings accounts are depositing money in banks. We are sending the leftover currency to ATMs,” he said.

Secretary of the All India Bank Employees' Association, B.S. Rambabu, said, “Bank customers are interested in holding the cash with them. The series of Income-Tax raids and notices have created panic among customers and they are withdrawing money.”