Withdrawal limit increased in ATMs, but there's still no cash
As if 50 days of unending queues in front of ATMs were not enough, the common man has been left more frustrated by the government just two days into the new year.
The RBI’s latest notification announcing to increase daily withdrawal limit at ATMs from Rs 2,500 to Rs 4,500 (per day per card) too has proved to be a dampener as most ATMs continued to be either out of cash or yet to be calibrated to the new withdrawal limit.
On December 30, the RBI had announced that the cash withdrawal limit from ATMs will be increased from January 1. However, no changes were announced in the weekly withdrawal limit — Rs 24,000 including from ATMs for individuals, and Rs 50,000 in case of small traders.
In its notification, the central bank stated that the decision was taken "on a review of the position” (something that we really doubt).
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| The BJP government claims that people have supported Prime Minister Narendra Modi's bold step to demonetise high-value currency notes. (credit: PIB) |
“Most of the ATMs are still not working. The ATMs need to work through the day. Till that happens there is no meaning of these announcements, the moot point is the supply of cash and that needs to be worked on,” CH Venkatachalam, general secretary, All India Bank Employees’ Association, was quoted as saying by the Hindustan Times.
Even though the BJP government claimed that people have supported Prime Minister Narendra Modi's "bold step" to demonetise high-value currency notes, the common man’s hopes were dashed once again.
Following the December 30 announcement, the only increase it seems has been in the number of hopefuls rushing to lay hands on their own cash in the new year.
So, what was the hurry to announce one more change without preparation? Has the RBI not learnt its lessons in the past 50 days?
Incidentally, the shortage of cash is more in rural areas with limited number of bank branches and a few or no ATMs. The focus till now has been on supplying cash to areas where people were largely dependent on cash. These are the areas where electronic payments are yet to pick up.
According to Ecowrap, an SBI research report, given the current phase of “frantic printing”, 75 per cent of the total value of demonetised notes can be supplied by the end of January. The report also said that "it seems within next two months things would be pretty close to normal".
With daily lives of people almost coming to a standstill, it seems abnormal will be the new normal.