Indore: The currency crunch has deepened in the city as the inward movement of currency notes of Rs 2,000 denomination has almost stopped in local bank branches. Experts said this is because people have begun to hoard high denomination currency notes. Indore is considered the financial capital of Madhya Pradesh where banking transactions take place on large scale every day.
A senior public sector bank official told Free Press that Reserve Bank of India has restrained supply of currency notes of Rs 2,000 denomination to the banks in last 15 days. As a result, ATMs are left with no currency notes of this denomination. The people who came to know of this inside information from banks began to hoard these currency notes.
For banks, it was a double-sided attack. On one hand, RBI did not issue fresh currency notes of Rs 2000 denomination. On the other hand, people avoided depositing currency notes of Rs 2000 denomination with banks. This was a major reason for cash crunch.
ATMs run dry
The cash crunch continued in the city on Wednesday. Except Kodak Mahindra Bank and Axis Bank, about 45% of ATMs of all banks lacked cash till 3 pm. After 3 pm, ATMs released limited amounts. The banks have decreased the withdrawal limit of notes from ATMs from Rs 10,000 to Rs 5000 – Rs 4000.
Rajendra Goyal, ex-independent director of erstwhile State Bank of Indore
This is a huge possibility that corrupt people including politicians have started hoarding Rs 2000 currency notes. This note is small and thin to hoard and also the elections are round the corner and the fear of these notes being demonetised has disappeared.
Mukesh Bhatt, lead district manager
There was no fresh supply of cash from RBI. In this situation, banks managed to fill ATMs with whatever cash they received at their branches.