PANAJI: Banks in Goa are reporting a sudden increase in demand for cheque books and ATM cards due to the cash crunch after demonetisation of Rs 500 and Rs 1,000 currency notes.
With very little currency circulating in the market, the demand for cheque books has shot up considerably, said branch managers of banks.
“On an average, we are issuing about 20-25 cheque books daily,” said a senior official at the Bank of India, Campal branch. “Prior to demonetisation, the branch issued about two-three cheque books per day. The request for cheque books is from old accountholders, who previously came to the branch and withdrew money through withdrawal slip,” he said.
“People are realising that it is the best option in the current scenario wherein there is acute shortage of currency for day-to-day transactions,” said the BOI official. The demand for cheque books is from retailers, shopkeepers, vegetable and fruit vendors and from small accountholders, he said.
Pointing to the stack of requisition slips on his table, another official of a small nationalised bank agreed that the demand for cheque books has shot up. The branch, located on M G Road in the city, issued about 15 cheque books on Monday, which is the average number every day of the week, he said.
A senior source at the Canara Bank, located on the city’s 18th June Road, pointed out that applications at the branch for cheque books are more than the ones for debit cards. “New customers of Jan Dhan accounts were issued Rupay debit cards on opening of their account, so most of them already have ATM cards,” he said. Currently, people are asking for cheque books as they want to avoid cash transactions, said the Canara Bank source.
Although Goa is a well-banked state with residents having more than one account, the usage of cheques is limited other than for utility bills. Salaries and voucher payments in cash in shops and commercial establishments is the norm. Most people make day-to-day payments through cash. However, with the surge in demand for cheque books and ATM cards, banks expect an increase in the number of cheque/card transactions in the future.
There is an acute shortage of currency in the market after the government scrapped Rs 500 and Rs 1,000 notes on November 8. The two currency notes accounted for 86 per cent of the notes in circulation. New currency notes of Rs 500 are yet to be released in Goa. To tide over the shortage, the government is rationing cash withdrawals through banks and ATMs. The shortage of currency is also because banks and ATMs are dispensing Rs 2,000 notes and shopkeepers are reluctant to accept them due to lack of change.
