Banks brace for payday

Pinak Ghosh and Sambit Saha, TT, Calcutta, Nov. 30: The Reserve Bank today injected the largest volume of cash into the eastern region's banking system since the demonetisation as the government braced for its sternest test tomorrow when crores will queue before banks and ATMs on their payday.

The central bank sent Rs 780 crore to the banks' chest branches today, RBI officials in Calcutta said while declining to speculate if that would be enough.

"The RBI issue office was sending out Rs 450-500 crore a day on an average but the remittance has been stepped up," an RBI official said.

But there was a dampener. There were no 500-rupee notes in the remittance, which consisted of Rs 500 crore worth of 2,000-rupee notes and Rs 280 crore worth of 100-rupee notes. Bank officials could not say when the new 500-rupee notes might be sent to Calcutta.

The extra cash failed to enthuse most of the bank branches, with many planning to ration withdrawals.

"We have internally decided to hand out Rs 5,000 per withdrawal so that more customers return with money. Plus, some contingency plan needs to be made for holders of current accounts and pension. It will be need-based and on a case-to-case basis," a United Bank of India official said.

In most parts of rural Bengal, bank branches are preparing to give even less. In contrast, some Calcutta banks don't want to put any curbs.

"We'll follow the RBI guideline on weekly withdrawals (up to Rs 24,000) - on a first-come-first-served basis," an executive at a PSU bank said.

A State Bank official said that some branches would open additional counters, with separate queues for senior citizens and pensioners. "Police stations near the branches have been alerted in case tension escalates," he said.

The focus will be on over-the-counter disbursal, with the ATMs replenished with the usual amounts.

The cash crunch will dictate how blue-collar workers and domestic hands will be paid tomorrow.

"I have decided to give cash for payments below Rs 1,000 and cheques for the rest," a grocer in Beleghata market said.