VIJAYAWADA: The grim spectacle of cash crunch, of late, is now being witnessed at post offices across the State. Almost all transactions in banks and post offices are limited to less than Rs 6000, though there are no official orders to that effect. Almost all banks are facing severe cash crisis. With this, post offices, which get money from banks, are unable to pay their customers when they want to withdraw their deposits.
Thousands of postal SB account holders, who want to take back their amounts, are facing several problems due to acute cash shortage. Since March, the situation has worsened and almost 80 per cent of the rural post offices in the State are facing severe cash scarcity.
India Posts officials say cash shortage is looming across South India but the situation is much better in AP when compared to Karnataka and Telangana. "As the post offices get money from banks which depend on RBI for cash, we are being affected indirectly. The people in rural areas are the worst affected by cash crisis and we trying our best to bring money into circulation," said an official at the Post Office in Gandhnagar area of the city.
Cash indents placed by the postal officials since January this year are yet to be met. The officials are placing indents for Rs 50 lakh in every district daily but they are getting only Rs 10 lakh from the banks. The deposits at post offices have also come down, affecting withdrawals. As of now, they are unable to disperse sufficient cash for withdrawals.
Speaking to Express, Garikapati Venkat, Chief General Manager of SBI, Andhra Pradesh, says that the bank is finding cash management difficult, hitting supply to rural branches and post offices. "The deposits have come down and we are finding it hard to get sufficient amount for daytoday transactions. So, we are managing with limited cash. Sometimes, we fail to supply money to post offices and rural branches. We request the public to deposit their money in the banks to ensure that the outflow is good enough," he added.
Bank officials say that the deposits are not sufficient for supply to the ATM's. In almost all the banks, the officials have placed withdrawal limits and are dispensing less than half the amounts the customers ask for.
B Katheek, who visited a bank branch to withdraw his first salary of Rs 10000, received only Rs 5,000. When asked, the bank officials, said that they had only that much to give.
"The banks are unofficially putting limits on withdrawals. As the ATMs have failed to dispense cash, have come to the bank to withdraw money but I have not got the amount I have asked for," he added.
At some banks, the staff are not allowing their customers to withdraw more than Rs 6,000 due to currency crunch. 'No Cash' signs are a common sight at ATMs at public spaces like RTC bus stands, railway stations and airports. With this, the travelling public are facing several problems.
Speaking to Express, SLBC convenor, KSD Siva Vara Prasad assured that the situation will ease in the coming 24 hours. However, the situation remained the same across the State after that. There are over 7,600 ATMs and most of them are empty. "The RBI has assured us of providing some cash and we are expecting it to reach us in the next two or three days," said SLBC convenor KSD Siva Vara Prasad.
Swamy, Andhra Bank Zonal Manager, said, "We are feeding ATMs every day with cash but due to heavy withdrawals by the public, they are going immediately thereafter. The people are asking for money in the branches. We are arranging them in majority of the cases. In a few cases, when the branch turns helpless, we are asking the customers to visit again. As of now, there is cash shortage across South India. I have been told by the head office that some amount would be given to our banks in a day or two."
Quote 1
We are feeding ATMs every day with cash but due to heavy withdrawals by the public, they are going immediately thereafter. The people are asking for money in the branches. We are arranging them in majority of the cases. In a few cases, when the branch turns helpless, we are asking the customers to visit again
Swamy, Zonal Manager, Andhra Bank
Quote 2
The banks are unofficially putting limits on withdrawals. As the ATMs have failed to dispense cash, have come to the bank to withdraw money but I have not got the amount I have asked for
B Kartheek