Bank employees union raps govt, RBI

Saying the demonetisation move was announced without enough preparation, the All India Bank Employees Association (AIBEA) asked bank managements on Monday for additional infrastructure and staff support.

In a letter to the Indian Banks’ Association, it said the government or Reserve Bank (RBI) should be approached to allow all government departments, agencies or institutions to exchange the banned Rs 500 and Rs 1,000 notes, in addition to banks and post offices.

RBI should also immediately ensure adequate supply of cash in denominations of Rs 100 and new Rs 500 notes, ATMs re-calibrated on priority and made ready for use within the shortest possible time. More terminals are needed at branches handling heavy cash load, to detect fake notes.

And, while extra business hours are acceptable, staffers should be used in shifts, not for continuously long hours. Arrangements for conveyance, food, etc, should be made, and all banks instructed on payment of overtime pay.

The entire workforce in the banking sector had risen to the occasion, looking to the plight of customers, outperforming in the past four days, said AIBEA.

“While we do not wish to go at this stage into the merits or otherwise of the scheme announced by the government in achieving the purpose for which it has been intended, we would definitely like to point out that the scheme has been announced but without proper preparedness by RBI to meet the situation,” said C H Venkatachalam, general-secretary, AIBEA.

The situation is unbearable for both customers and bank staff, he said. There is also a dire shortage of Rs 100 notes; a gap had existed earlier, too, between what was intended for and supplied. For example, in 2015-16, against an indent of 5,350 million each of Rs 100 notes, the supply received was 4,900 million of these.

“One cannot understand the reason behind banning the existing Rs 500 notes and not providing new supply of these in time.  All customers do not prefer Rs 2,000 notes, unlike the case with Rs 500 or Rs 1,000 notes.  This is also resulting in a lot of friction and argument in the branches between customers and staff,” said AIBEA.

It was announced that the ATMs would be ready to function in two days, from the 11th but the reality is that most ATMs across the country are closed or non-functional or partly functional.  This has put more pressure on bank staff and all customers are compelled to come inside a branch to draw cash from their accounts. 

Now, it has been told that it might take another three weeks for ATMs to work normally. “This is also doubtful because, the existing 200,000 ATMs of banks are at various locations, including about 35,000 in rural areas. The ATMs need to recalibrated with proper trays to accommodate the new denominations, of different sizes.  Maybe the software also would require some changes.  With acute shortage of Rs 100 notes, the ATMs are likely to be dead machines for quite some time, which would add to the ire of people.  This anger is bound to be shown on the branch staff, making their life more miserable,” said Venkatachalam.