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As payday dawns for millions of employees across the country, cash-strapped banks face their sternest test post-demonetisation, with depositors’ patience running thin on the ground.
From calling for cash supply every two hours to setting up additional counters and deploying extra manpower, bank branches across the country are doing whatever they can to meet the huge rush on salary day.
The first week of the month is typically a rush time at bank branches and ATMs across the country. However, this December bankers are putting in place extra measures to cope with a throng of customers, possibly with flared tempers, following the demonetisation of ₹500 and ₹1,000 notes.
Rajnish Kumar, Managing Director, State Bank of India, said, “We have in place additional staff, retired staffers and extra counters. We have been working at more than 100 per cent capacity.” Since the crowd has been more than usual at banks, branch heads have been in touch with the local law and order machinery.
Managing the crowd is one thing; dealing with inadequate cash supply is another. “We have shortage of cash in key currency chests such as the one at Narayanaguda in Hyderabad, which services many branches. We have not been able to replenish cash in many ATMs. Many branches too have limited cash. We have to ration it,’’ said a senior Andhra Bank official.
According to bankers, in view of the pressure of payment on bank branches and ATMs, the RBI has stepped up cash supply across branches. In Kerala, where trade unions are strong, the RBI is learnt to be shipping additional cash to cope with the payday requirements of government employees and pensioners.
K Unnikrishnan, Deputy Chief Executive, Indian Banks’ Association, said: “The RBI has said bankers should interact with customers and impress upon them the use of digital or alternative banking channels for transactions.”
But the cash crunch has forced banks to come up with their own rules. The State Bank of Hyderabad branch in Osmania University campus on Wednesday imposed a ceiling of ₹500 on withdrawals, causing consternation among waiting customers.
“We are making all efforts to serve customers depending on cash availability. There is pressure, of course,’’ BS Rama Rao, Executive Director, Vijaya Bank, said.
A branch manager of a PSU bank said, “Withdrawals will be higher in our branches, which have a larger proportion of salary and pension accounts.”
A worried banker summed it up: “Following Akrosh Divas, we may be in for an Akrosh Week.”
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