Bank queues persist; Government says situation to improve soon

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New Delhi | Updated: December 15, 2016 10:00:52 PM

Cash starved customers continued to line up outside banks and ATMs today in the fifth week since demonetisation announcement, even as the government exuded confidence that the situation will improve in the coming weeks with RBI pumping in more Rs 500 notes.

atm-reuTo meet the demand, branches are resorting to cash rationing as they are getting less than their requirement from currency chests. (Source: Reuters)

Cash starved customers continued to line up outside banks and ATMs today in the fifth week since demonetisation announcement, even as the government exuded confidence that the situation will improve in the coming weeks with RBI pumping in more Rs 500 notes. Banks across the country are struggling to manage long queues as cash starved customers throng branches to get valid currency notes.

To meet the demand, branches are resorting to cash rationing as they are getting less than their requirement from currency chests.

Meanwhile, Reserve Bank Governor Urjit Patel was shown black flags at Kolkata airport by Congress workers who were protesting against demonetisation. Patel was in the West Bengal capital to chair the 562nd meeting of the Central Board of the RBI.

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According to an RBI release, the Central Board “reviewed the current economic situation, global and domestic challenges and other specific areas of operations of the Reserve Bank of India.”

Economic Affairs Secretary Shaktikanta Das told reporters that most of the 2.20 lakh ATMs have been recalibrated to dispense new Rs 2,000 and Rs 500 notes.

He further said that supply of new currency notes will considerably improve in next 2-3 weeks.

“…going forward, I would expect in next 2-3 weeks situation will considerably ease out with the supply of more new 500 rupee notes,” he told reporters here.

The RBI has already pumped in Rs 5 lakh crore worth Rs 500 and Rs 2,000 notes and by month end about 50 per cent of the about Rs 15 lakh crore worth demonetised currency would be injected into the system.

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