Cash crunch hits people

Visakhapatnam: Even after one-and-a-half years, still demonetisation impact continuing and people were suffering due to unavailability of currency not only at ATMs but also at the banks.

Though people were facing tough times, the government or the bankers are not taking up any measures to maintain cash at ATMs and banks. The tall claim of the government that the 90 per cent of all the transactions, including at Rythu Bazaar, would turn into cashless had become a farce.

There are 750 branches of 40 banks with over 1,200 ATMs in the district. Except a few, there is no currency in the ATMs. Bankers are saying that majority of the investors are withdrawing their deposits from banks assuming that there is no security for their money  if the government introduces FRDI Bill in Parliament. The FRDI Bill is the cause for currency crisis, the bankers alleged.

Meanwhile, the businessmen and traders almost reduced their turnover after the GST implementation. With the demonetisation and GST impact, the business at all points has been badly affected and the people are depositing the cash reserves at the banks. According to the managers of all the leading below 20 percent of cash is coming back and 80 percent of the currency disappeared during in the last two months.

The business establishments, which used to deposit cash, including cinema halls, petrol outlets and other establishments, reportedly reducing the cash deposits in the banks. “Earlier at an average over Rs 1.5 crore deposits received against the withdrawals of Rs 80 lakh per day. However, during the past one- -and-a-half months, the situation was changed. There is no incoming cash and amount of withdrawals is more.

Even we are asking for cash, the higher officials are not responding and directing to manage the show as there is no currency at the chest. If a customer wishes to draw cash, unless other customers deposit, we are failing to pay,” a leading branch manager in Dwarakanagar in the city lamented.

“Yes, severe currency crisis prevailing not only in Visakhapatnam, situation is similar across the state and also in Telangana. The RBI is not responding to arrange currency against the indent from the both states. As there are no currency reserves at the chests, the banks also facing troubles to make available of liquid cash to the customers.

This is because of the rumours on the FRDI Bill and GST implementation, rich customers are not depositing the currency in the banks. All the managements of the banks have been discussing about the issue. It will take some time to restore the normalcy,” Assistant Lead Bank Manager of Visakhapatnam  Murthy told The Hans India.   

Meanwhile, the SBI, which is the lead bank in Visakhapatnam, is paying Rs 40 crore per month towards retired employees pensions in the district. Though Chief Minister N Chandrababu Naidu urged the RBI to provide currency, there is no response. However, the RBI directed the banks to adjust internally.

However, noticing the severity of the crisis, the RBI assured to send some currency to the tune of Rs 250 crore soon for Srikakulam, Vizianagaram, Visakhapatnam and East Godavari districts,” a senior official of State Bank of India said.

By VKL Gayatri