Underfed ATMs failed to meet the demand of cash-starved citizens on Monday while closure of banks due to Guruparva in North India gave the bankers some respite from the ordeal of working 12 hours or more a day to serve desperate customers.
The Government hopes that with recalibration of more ATMs and banks putting in place additional resources and manpower, the situation could ease soon.
Realising the urgency of the situation, the Government on Monday set up a task force under the chairmanship of RBI Deputy Governor SS Mundra to ensure that ATMs across the country are ready to dispense higher denomination notes in the shortest time.
“The number of ATMs, which will be recalibrated so that they can dispense Rs2,000 notes will be stepped up...To make this whole process faster, a task force was decided to be set up under the chairmanship of the Deputy Governor of RBI,” said Economic Affairs Secretary Shaktikanta Das.
“The task force would ensure that ATM network is activated in the quickest time,” he said. The eight-member task force, which will have officials from Finance Ministry, Home Ministry and banks, has been mandated to chalk out a strategy for expeditious reactivation of all ATMs.
Besides, the panel will have members from National Payments Corporation of India (NPCI), Chief General Manager of Department of Payment and Settlement Systems (DPSS) and Department of Currency Management of RBI.
The team will work closely with banks and various agencies involved in disbursement of cash and recalibration of hardware and software of the ATM network, he said.
A representative each of ATM OEMs, Managed Service Providers, cash in transit (CIT) companies and white label ATM (WlA) operators will be invited to the deliberations of the task force. It may also invite others, if needed. Recalibration of ATMs involves multiple agencies -- banks, ATM manufacturers, NPCI, switch operators, among others -- making it a complex operation requiring immense coordination, said the RBI in a statement.
The Government also decided to deploy large numbers of micro ATMs and activate the dispensing of cash through the networks of banking correspondents (BCs), post offices, banks and e-payment systems.
There are about 1.3 lakh branch post offices in the country. It has been decided to enhance the supply of cash to branch post offices to facilitate cash withdrawals from postal accounts. With 1.2 lakh BCs and 1.3 lakh branch post offices getting further activated, a total number of 2.5 lakh points in rural areas will be available to disburse cash and facilitate cash withdrawals from bank accounts.
The banks have been advised to arrange separate queues in their branches for senior citizens and divyang persons. There were separate queue for depositors and for those coming to withdraw money. As such, there will, three or more separate queues in every branch.
Interestingly, the moneybags have found ways to deal with demonetisation of the high value currency notes. They have started hiring people to exchange old currency notes with the new ones. This is one of the reasons for huge rush of depositors at banks. Reports suggest that some ‘moneybags” have hired poor persons with identity proof to work for them on a temporary basis till December 30. All that these temporary employees have to do is to stand in queue before the bank to get the demonetised Rs 500 and Rs 1,000 currency notes changed. Once transaction is done, the employee gets Rs 500 with himself and returns Rs 3,500 to the employer.
A senior Delhi Police officers old The Pioneer that with agents and contractors joining the fray to exchange notes for black money hoarders, the crowd at bank branches is getting longer with every passing day despite the fact that thousands of people have exchanged money. Once a person hired for the day manages to get the money exchanges, he or she is then asked to go another branch to do the same. Banks should use indelible inks to identify such people so that is the only way to deter them from repeatedly entering bank premises, he added.
On Monday, cash crunch in many parts was quite severe as banks were closed in North and Western India. The situation, as far ATMs are concerned, is still grim with people forced to wait for hours to withdraw money.
Bank branches in the Southern India witnessed a huge rush of people for withdrawal of currency as weekly limit for withdrawal has been raised to Rs 24,000.
The average waiting period in queue in the Southern and Eastern part of India was not less than four hours and people were seen queuing up with the day break at branches.