Heavy rush expected for cash exchange as banks reopen after a break

Banks across India opened on Monday after two days of restrictive entry, and heavy rush is expected for cash operations. On Saturday, banks were open only for senior citizens and own-customers but other-bank-customers were not allowed to exchange old notes. Sunday was a usual off-day. 

Monday is the 13th day post demonetisation. Since morning, people made a beeline at the banks and outside ATMs to wait for the banks to reopen and cash-dispensing van to arrive at ATMs respectively.       

As banks opened after a day's break on Monday, people rushed to exchange old defunct bills or withdraw cash. On the 13thday of demonetisation, people still have to stand in queues for hours at ATMs as most of the cash vending machines are either dysfunctional or running out of cash due to huge rush.

There have been reports coming from different parts of the country about people being frustrated with shortage of cash at branches, leading to scuffle with bank staff and rioting at some branches. Besides, those having wedding in their families are still not able to withdraw Rs 2.5 lakh from their accounts, even after the relaxation announced by the Centre five days ago.

Banks said they have not yet received operational guidelines from the RBI in this regard. People are visiting their branches with gazette notification that talks of relaxation being provided tofarmers and for marriage, but to no avail.

"Withdrawal for marriage purpose can be availed onlyafter RBI's notification, which will have clear direction about the various formalities needed to be furnished by the customers for withdrawal," said a senior public sector bank official. To screen repeat customers, banks at many places have started using ink mark on fingers of people who are exchanging old notes. Besides, the government last week also reduced the exchange limit of old defunct notes to Rs 2,000 from the earlier Rs 4,500.