The Cash Crunch will continue for next 10 days in Hyderabad and unofficial withdrawal of cash from banks. The demand for cash has increased and the RBI has not considering the issue.
Despite the Union government lifting the cap on withdrawal of cash last Monday, banks at many places are not in a position to disburse not more than 10,000 on savings accounts. “We don’t have cash to load ATMs. We are able to pay a maximum of 10,000. This is similar to the situation in November and December 2016,” said a manager of a public sector bank.
Small traders are worst hit. “The government should not have lifted the cap if it is not in a position to supply money,” said S Gopala Krishna Murthy, a stationery shop owner in Ameerpet. Bankers are now depending on cash deposits by customers. “People, who have withdrawn cash, are hoarding it fearing cash crunch. This is affecting the supply of cash into banks,” said a bank manager.
Officials of some banks met RBI representatives on Friday and Saturday and said there was no positive outcome from the meetings. Banks will get their remittance on Monday, but that will not be sufficient to meet the demand in branches and load cash in ATMs. The situation is likely to continue for another 10 days, they said.