The banking services which had almost come to a standstill following the announcement of demonetisation by the Prime Minister are getting back on track.
The banking services which had almost come to a standstill following the announcement of demonetisation by the Prime Minister are getting back on track. The IE reports that the situation has improved with over 50% of the ATMS recalibrated and the availability of cash improving significantly. Bankers told IE that the digital payments have risen to 100% in the last two weeks. Meanwhile, the Reserve Bank of India has warned banks against exchanging or depositing cash by fraud in the accounts of “miscreants”.
The State Bank of India (SBI), the government-run bank that accounts for 1/4th of the entire banking business in the country informed that it had recalibrated over 28,000 ATMs or 57% of the 49,000 ATMs across India. SBI’s Managing Director Rajnish Kumar told IE that the recalibration process would be over by the end of November. He informed that the ATMs in villages and other remote areas were taking much of the time. Kumar further stated that the number of ATM transactions was getting back to normal. The normal ATM transactions were in the range of 75-90 lakh before demonetisaion. However, 89.8 lakh ATM transactions were reported on Monday. Although, the withdrawn amount of cash was less at Rs 1,677 crore due to the RBI imposed restrictions.
Kumar said that on Tuesday, until half day, 48.6 lakh ATM transactions had been reported by the SBI which involved withdrawals of RS 924 crore. Kumar was of the opinion that the situation had improved, particularly in the urban areas, where he said that he found the crowd to be getting shorter. Kumar noted that the digital mode of payments had increased by almost 100 percent. However, according to another senior bank official, the people who withdraw cash are not spending it. He said that it would be a wise idea to spend the money so that the cash keeps on circulating itself in the system.