Cash flow starts easing after 2 months

NASHIK: Cash flow has started becoming normal after a two months of scarcity following arrival of the new Rs 500 notes in the market.
Earlier, there was a scarcity of small currency in the absence of the Rs 500 notes. In the last two weeks, the currency has increased. ATMs are also dispensing Rs 4,500 a day in the denomination of Rs 500 notes.
Banks are, however, still in a fix as they are not getting adequate amount of cash from the Reserve Bank of India (RBI).Although, they are continuing to provide cash to customers.
“The banks have increased the withdrawal limit to Rs 4,500 a day from ATMs. But the cash withdrawal limit at banks is still the same, Rs 24,000 a week on savings accounts. This limit needs to be increased to at least Rs 50,000 for savings accounts,” said a private employee, Dinesh Suryavashi.
The move to go cashless has dealt a blow to several vendors and traders across the city.
“There are issues with cashless transactions. Sometimes, transactions are declined when debit/credit cards are swiped, but the amount is debited from the customer’s account. This leads to verbal skirmish. The banks need to address these issues,” said Prafulla Sancheti, president of Nashik City Traders’ Federation.
City markets like Main Road, Shalimar, M G Road and City Centre Mall are crowded again as people have enough money to shop. Markets across the city were severely hit by the demonetisation move as there was no rush of people.
“I withdrew Rs 4,500 from a private bank ATM and got cash in Rs 2,000 and Rs 100 denomination notes. While the new notes of Rs 500 have arrived, only a few banks have them.”
The Currency Note Press (CNP), Nashik, had sent the biggest ever consignment of 51 million pieces of currency notes, including 10 million of Rs 500 denomination, to the Reserve Bank of India (RBI) on the eve of New Year to tide over the ongoing cash crunch.