Demonetisation effect: Deadline ends, but not serpentine bank queues

Chennai: Exactly 51 days ago, Prime Minister Narendra Modi declared Rs 500 and Rs 1,000 notes as invalid and promised that normalcy will return in 50 days. But a day after the deadline ended, woes of the man on the streets have only increased.

Accounts have money; banks are open and some of the ATMs have upped their shutters – but people have not been able to withdraw their money for daily expenses. Bank managers say the Reserve Bank of India’s cash chests in their cities provide only Rs 2,000 notes for majority of the amount they seek cash.

With lower denomination of Rs 100 and new Rs 500 notes not available in every bank and ATM, people are either forced to go ‘cashless in their hands’ or use their cards for transaction. And many are hoping Mr Modi to make some “dramatic announcement” on Saturday when he addresses the nation for the second time in two months on demonetisation.

K. Anish, 25, a snack seller at KK Nagar, narrated his tale to Deccan Chronicle on Friday. “I have been able to get only Rs 2,000 notes since majority of the ATMs dispense only the new high denomination note. I pay a rent of Rs 6,500 and my house owner has not yet tendered me the change of Rs 1,500. The problem here is non-availability of new Rs 500 notes,” he said.

“Only 2 ATMs of the 10 in this area dispense cash all the time and that too drains quickly. It was said that blackmoney hoarders would be affected by the move and common man will benefit. But I am not sure who is affected and who is benefited,” Mr Anish said.

Though the woes have not ended, a few admit that the situation is much better than what it was a few weeks ago. A. Kannarasu, 35 years old,  says his financial situation is much better. “It is very annoying to see the '2000 note every time I withdraw money from ATM. It is only in TV where we get to see the new '500 note,” he said.

S. Sarath Kumar, 40, resident of Porur sees things in a different perspective and says, “It is good but too harsh. PM had made everyone to step inside bank and forced to learn basics of banking that even an illiterate is gaining knowledge on the subject. Moreover, while spending money, most of us are compelled to think twice because the money is not only earned hard but also withdrawn hard.”

All the three who spoke to DC say the banks should ensure that ATMs dispense lower denomination notes of Rs 100 and Rs 500 so that people get to spend them.

Deadline for depositing denotified notes ends

Deadline for depositing old Rs 500 and Rs 1,000 notes ended on Friday with banks witnessing long queues of people scrambling to turn their old invalid currencies into valid ones.  

If anyone wishes to deposit their old currencies, they can deposit them only at the branches of Reserve Bank of India with photocopies of their proof of identity and PAN card. As Friday was the last day, most of the banks ensured that they took efforts to ensure that people deposit their old notes. A few banks also opened special counters for people depositing their old notes.  

The Prime Minister had on November 8 announced that Rs 500 and Rs 1,000 notes will be rendered invalid and people who possess them can deposit them in their bank accounts till December 30.  

“I was out of the country for a few weeks and I returned last week. But I did not get time to deposit old notes. But today I took time to visit my branch and deposit Rs 10,000 that I had with me,” Shriram, a software professional, said.

He said he was forced to visit since post December 30 he cannot deposit old notes in branches. “I did not want to go to a RBI branch and deposit my old notes. I don’t know how long the process would take,” he said.

The government while announcing demonetisation said people can deposit any amount of cash in old notes in their accounts and there was no bar. But in mid-December, the government modified rules saying that people who deposit more than Rs 5000 may have to give a reason for depositing them late. However, after a public outcry that notification was withdrawn.