RBI asks to not withdraw again; exchange turns out to be 1 time window for now

New Delhi, November 13: RBI on Sunday issued an advisory to ask people to not repeatedly withdraw money from banks for hoarding and reassured that enough cash is available for the needy.

On November 8, while announcing demonetisation of Rs 500 and Rs 1000 notes, PM Modi had assured that each person would be free to exchange Rs 4000 from any branch, withdraw Rs 10, 000 per day and Rs 20, 000 in a week from their account. But a total chaos has been reported across the country as banks and ATMs are running out of cash and people in queues are denied money after waiting for hours.

The government’s implementation for banning currency has gone total disarray for the common man as there has been no specific direction on whether the Rs 4000 cap was to be a daily limit of money exchange or a 1 time window till November 24. Several people have been reportedly visiting multiple banks to exchange their old currency after the initial directive.

Following the RBI’s initial directive, some people used multiple IDs for exchange at different bank branches. The confusion and chaos has been immense. At some branches the money is being denied after the same customer is identified for the exchange. There is no tracking system for number of transactions a person is making for exchange.

Owing to huge rush and scuffle at various banks, for now, banks have started treating the exchange limit as a one-time window till November 24.

Probably this was the reason the RBI had to chip in and issue another advisory on Sunday. “The Reserve Bank assures members of the public that enough cash in small denominations is also available at the Reserve Bank and banks,” said RBI in its advisory.

RBI said that enough cash is available whenever a needy needs it, thus “public need not be anxious, need not come over to banks repeatedly to draw and hoard.”

The advisory was issued following massive crowds outside all banks and ATMs across the country for a fourth straight day since the government barred 500 and 1,000 rupee notes as legal notice.

Due to bank closure on Monday in some parts of the country, distressed people are thronging branches since most of the ATMs are out of cash.

Adding to people’s woes only 60 per cent of ATMs could get valid currency feed five days after Prime Minister Narendra Modi announced surprise demonetisation of two higher value currency notes on Tuesday.

Finance Minister Arun Jaitely said in a news conference on Saturday that it might take around two to three weeks to get the two lakh ATM fully functional.

Though PM Modi has repeatedly thanked bank officials and general public for the cooperation, the public seems to have lost any choice as they are cashless and deemed to stay cashless until the cash appears in the bank.

Wefornews Bureau

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