Private banks, ATMs face cash crunch

BENGALURU: It is almost the end of the first week of December and accounts have been long credited with salaries, but the plight of people looks far from ending as they keep queuing up in front of banks and ATMs in their hunt for the elusive cash.
Private banks, in particular, seem to be running woefully short of cash, which has worsened the situation as a majority of private companies have salary accounts with ICICI, HDFC and Axis Bank.
With the government and RBI setting the maximum withdrawal limit from ATMs at Rs 2,500, people have been lining up to withdraw more money from banks, which has led to a severe cash crunch. Many HDFC Bank ATMs are giving out Rs 2,000 rather than the stipulated Rs 2,500, due to the shortage of Rs 100 and Rs 500 notes.
“In the past one month, about Rs 8 lakh crore have been scrapped and just Rs 3 lakh crore given back to the system.Such a difference is bound to create problems. We are working with the RBI to put things back in order as soon as possible,“ Rajiv Anand, retail banking executive director at Axis Bank, told TOI.
Anand added that out of 13,000 ATMs the bank has across the country, about 95% are recalibrated and functioning properly. “But given the current situation, it is imperative to distribute the daily cash obtained from the bank into branches and ATMs. So it is very likely that a few ATMs c do not have cash,“ said Anand.
A visit to three branches of t HDFC around MG Road showed that none had cash and in most cases, the branches were left dry by midday.Managers are advising customers to come early to increase their chances of withdrawing money. “There has been few deposits today and we don't have any more cash,“ a branch official said.
HDFC and ICICI banks were not immediately available for comment.
Many private bank ATMs across the city have remained shut since the middle of last month, with smaller nondescript ATMs in many localities bearing the brunt. The situation is only a little better in State Bank of India (SBI), the country's biggest lender, where many customers are still getting Rs 100 notes, necessary for any transaction in cash.