The step to allow debit cards to be swiped at some petrol pumps to get Rs 2,000 has also run into implementation hurdles.
The two recent steps by the Centre to ease cash flow have failed to get desired results. For those families, having weddings, the government’s decision to permit a one-time cash withdrawal of Rs 2.5 lakh was expected to come as a breather, but now that the measure will kick next week, as the rules to implement this step has not yet reached to lenders. Also the step to allow debit cards to be swiped at some petrol pumps to get Rs 2,000 has also run into implementation hurdles.
Punjab National Bank managing director Usha Ananthasubramanian has said that wedding disbursals would have to wait till the Reserve Bank of India gives green signals for the rules. Speaking to TOI she said that her bank was unable to allow withdrawal of Rs 2.5 lakh for marriage purposes in the absence of operational guidelines from the banks, adding that the delay is hitting people hard in this wedding season.
As per the move to allow pumps to distribute cash, only 3,000 pumps across the country have card swipe machines from SBI that also allow for cash withdrawals . Several other banks that were to extend the cash withdrawal service have card swipe machines from HDFC, ICICI Bank and Citi Bank. They will take sometime to upgrade their machines to offer option for distribution. If these banks speed up, it can help increased supply of cash, a TOI report has said.Another issue is that number of pumps that are supposed to offer the cash-distribution service is too small to meet the demand.
Even while lines across some banks have shortened after the government cut the limit on exchange of old notes and ATMs started dispensing new Rs 500 and 2000 notes, use of indelible ink for exchange of old notes remains unsystematic. Few banks were using permanent markers to identify those who have exchanged old currency notes. Couple of days back the Election Commission had urged banks in the election-bound states not to apply the ink on any finger of the customers.