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Business News/ Industry / Banking/  Cash crunch likely to escalate in Mumbai during bank holidays
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Cash crunch likely to escalate in Mumbai during bank holidays

Citizens who supported demonetisation are now running out of patience following reports that huge amount of cash in new notes is being seized by authorities across the country

Long-to-moderate queues have been seen outside different cash-loaded ATMs across Mumbai. Photo: Aniruddha Chowdhury/MintPremium
Long-to-moderate queues have been seen outside different cash-loaded ATMs across Mumbai. Photo: Aniruddha Chowdhury/Mint

Mumbai: With banks closed for three consecutive days from Saturday and ATMs in Mumbai still not functioning to full capacity, the ongoing cash crisis may escalate further leaving residents high and dry for want of cash during the weekend.

Customers are venting anger as most of the ATMs are running dry. As banks remained closed, long-to-moderate queues were seen outside different cash-loaded ATMs, while some ATMs continued to flash “ATM Closed" placard. Citizens who stood by government’s decision to demonetize high denomination notes earlier, are now running out of patience following reports that huge amount of cash in new currency is being seized by the income tax and police authorities across the country.

“This is really shocking and shameful that a common man is dying in the bank and ATM queue to get Rs2,000 and Rs10,000 but the high and mighty are stashing cash of over Rs60 crores and Rs80 crores ... where are these notes coming from? Can this be possible without nexus of bank officials," a former banker from Indian Bank said.

Referring to the cash seizure of Rs85 lakh in Rs2,000 notes from a person at Matunga in central Mumbai by police on Friday, he said, “Bankers are turning the bold decision by the Prime Minister into a meaningless exercise."

ALSO READ: Demonetisation: Puducherry CM urges for more supply of new currency notes

Meanwhile, few banks including a private sector bank kept their branch open for accounting purposes. A senior executive of the bank having branch at Ghatkopar (East), said, “We have been asked to keep the bank today for accounting purpose and we are doing the same here. It is not open for public."

Interestingly, few ATMs in south Mumbai dispensing Rs2,000 notes were found empty, an indication that people are not in favour of possessing this high denomination note. Due to the holidays starting from 10 December, all the banks would remain closed for three consecutive days. 10 December being a second Saturday, 11 December being Sunday and 12 December being Milad-un-Nabi, Prophet’s Birthday.

Ajeet Kumar, an executive working with a pharmaceutical company, who withdrew Rs2,000 from an ATM in suburban Andheri, said, “It seems that the real trouble will begin from tomorrow (Sunday) as few ATMs are currently filled with cash which would be over by evening today. It would be interesting to see how people will cope up with cash crunch for next two days after cash in the ATMs dries up," he said.

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Published: 10 Dec 2016, 05:48 PM IST
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