Banks, ATMs run out of cash on Pay day, chaos continues

TIL Desk/Business/New Delhi-On the first pay day since demonetisation was announced, banks across India not only braced for huge queues across branches but soon enough ran out of cash too. As many bank accounts were credited with salaries, more chaos was witnessed outside banks on Thursday as a large number of salaried people also queued up to withdraw money.  Many were annoyed by the rush and the arbitrary withdrawal limits set by banks.

Limited supply of currency notes from the Reserve Bank of India (RBI) remains a challenge for managing cash dispensation. Banks do not receive adequate supply of notes and run out of cash at branches and automated teller machines (ATMs). Even ATM cash management companies say there is acute shortage of cash.

In a report a bank official as saying that his branch received 15-20 percent of the required amount. Due to this, bankers were rationing withdrawals so that more customers could be catered to. “RBI is currently supplying cash based on a variety of calculations including how much a bank branch got the previous day. That will continue.