500-rupee note boost to cut ATM queues

HYDERABAD: Here’s good news for cash-strapped citizens of Telangana and the state capital. More ATMs will be loaded with 500 rupee notes next week, which will go a long way in cutting ATM queues. And, more money will be available through ATMs than across bank counters.

Speaking to TOI, Srinivasa Rangachari, assistant general manager of

SBH

, said, “We will dispense more money through ATMs. The flow of money has already risen and it will increase further. More queues are seen outside ATMs attached to bank branches, these days.”

Telangana is likely to get a fresh cash boost on Monday. This week, RBI remitted Rs 2000 crore to the state.

RBI has told banks to distribute more money through ATMs in the city for easy withdrawal, said an official. The cash withdrawal limit through ATM is Rs 2500 per day. “Situation is likely to continue till RBI instructs banks to distribute more money over the counter,” a manager in a public sector bank said. A few banks are allowing cash withdrawal of up to Rs 10,000 across counter. Many have restricted withdrawal limit to only Rs 5,000 a day.

Bankers said cash flow will increase within banks in coming days, irrespective of remittance made by RBI. The reason being gradual increase in deposits in form of new currency from customers. More money is now available on ATMs. “Earlier, banks faced cash shortage as people would hoard new currency. Now, rotation of money is taking place. Traders are also coming to banks without holding money,” a banker said.

As more cash is available in ATMs at nights, some people are staying up late to withdraw money. “I noticed cash is available at night in some ATMs. On Friday, I went for a walk at dawn. I was surprised to see people standing outside an ATM,” said Vikas Chandra, a techie from Secunderabad. Bankers said they are filling ATMs with currency left with them after closure of day’s accounts, explaining reasons for most of the ATMs functioning during nights.