Short-on-cash banks approach RBI to brace for pay day

With pay day knocking at the door, banks are preparing themselves to face the huge rush that is expected to hit their branches across the state.

United Bank of India (UBI) has already approached Reserve Bank of India (RBI) to provide more cash to meet salary withdrawals and pensions. "We also plan to open additional counters at all our branches," CEO and MD of UBI Pawan Bajaj told PTI.

"We are prepared to face the rush at our branches on salary day. We have sought additional cash from RBI to meet part of the demand," an official from SBI's local head office here said.

SBI branches will open before the scheduled time to serve customers, the official said.

"We have also planned to open up special counters for senior citizens for pension withdrawals," he said, adding that RBI had called a meeting with various banks last week to discuss the issue.

Meanwhile, most ATMs across the city were either seen with shutters down or with 'No Cash' notices hung on their doors.

Largest private lender ICICI Bank also made arrangements to meet rush of salary withdrawals, a bank official said.