NT NETWORK
PANAJI
As the demonetisation of high-value currency notes completed 50 days on December 28 and after only a slight improvement in the currency situation, bank officials in the state are privately saying that people need to look at extended deadline of “at least March 2017” for the note ban pain to subside.
On the sidelines of the ‘digi-dhan mela’ in the city where several banks had set up stalls, the widespread view among the bankers was that difficulties arising from the note ban to customers, businesses and local economy will extend well into 2017.
“It will not be resolved easily and will continue for not less than three months,” said an official of a leading nationalised bank.
He pointed out that the government’s drive of cashless payments is being accepted by people slowly but requirement of hard cash for day-to-day transactions remains strong.
“Banks are replenishing currency in the ATMs more frequently than before, but customers’ urge for cash is so strong that they are emptying the machines in two-three hours,” he said.
Checks at ATMs have revealed that about 40 per cent have not re-opened properly after the demonetisation and those that are open give out only Rs 2000 notes. Although this week the currency situation has been somewhat better as new Rs 500 notes as well as Rs 100 notes have been in circulation but only some vending machines have started dispensing the notes.
The Bank of India ATM at Campal branch gave out three Rs 500 notes to a lucky customer on Wednesday who punched in Rs 1,900 for withdrawal. But ATMs of most other banks, including HDFC Bank and SBI, continue to dispense Rs 2000 and Rs 100 notes. Smaller banks like Dena Bank complained that they did not receive the new Rs 500 notes as of now and therefore cannot provide them to their customers.
An official of Corporation Bank said that people are holding currency notes and are not circulating them. However, he conceded that currency availability is “not like previous and overall situation is of shortfall”.
On November 8, 2016, the central government demonetised Rs 500 and Rs 1000 notes in an attempt to crack down on black money, corruption and terror funding. The scrapped notes accounted for 85 per cent of the currency in circulation. Following this, people were stranded for cash and faced considerable hardship in getting legal tender for purchase of essentials.
Seeing the suffering, Prime Minister Narendra Modi had asked people to bear the demonetisation pain for 50 days. He had asked for time until December 30 for relief from the pain over the scrapped notes.
Modi has been aggressively pushing for cashless economy.
However, local banks have said that 50 days will not be enough to reduce demonetisation pain and people need to be prepared for prolonged hardships.
Shortage of MPOS machines, non-familiarity with digital banking, e-wallet transactions are the reasons for the slow progress in cashless drive, banks said.