Long queues continue at banks, ATMs run dry after 3-day long weekend

Long queues of customers were witnessed at bank branches that opened after a three-day long break today as many ATMs did not dispense cash due to short supply of new currency notes.

Despite assurances from the Reserve Bank and the government, banks failed to get adequate cash from currency chests to meet the withdrawal pressure even six days after the pay day.

Faced with the acute shortage of cash, banks have imposed their own limits for withdrawal, as low as Rs 2,000 in some cases, against the limit of Rs 24,000 per week set by the RBI.

The situation at bank branches has not improved as ATMs are still not dispensing adequate cash despite being re-calibrated for new currency notes.

Meanwhile, RBI today said the money that various banks have issued through their counters and ATMs since November 10 and up to December 10 stood at Rs 4.61 lakh crore.

"The entire system is continuously gearing up for supporting the circulation of notes in the hands of the public. Daily, we are issuing more and more notes, getting it printed and issuing it and this will be a continuous affair," said RBI Deputy Governor R Gandhi.

Finance Minister Arun Jaitley said everyday RBI is injecting a large amount of currency into the banking system as part of its remonetisation exercise.

"Significant amounts are going to be injected in next three weeks which are gradually bringing the pressure down. As more and more new currency comes into circulation, the recirculation itself in the banking system and ATMs will make more currency available," Jaitley said.

Meanwhile, bank unions are demanding that RBI should take steps to supply adequate cash to all banks and details of notes supplied to banks "should be announced publicly by RBI on a daily basis".