Cash crunch to stay for another week, at least

New Delhi: Even as people across India continued to stand in long queues for the seventh consecutive day, waiting for banks and ATMs to cough up their own money, the Intelligence Bureau has informed the home ministry that the ongoing chaos is going to continue for at least another week, if not more.  

Union home minister Rajnath Singh, addressing a Martyrs’ Rally in Rewari on Wednesday, said that people will face hardships for at least another month, but added that it will be beneficial in the long term.

Eight days after Prime Minister Narendra Modi announced demonetisation, there just isn’t enough cash with banks to exchange old notes of Rs 500 and Rs 1,000, and to honour cheques. Thousands of ATMs across the country are still not working and even those that are working get empty within minutes.

The government said on Wednesday that it will take one more week to recalibrate half of the 2.5 lakh ATMs to dispense the new Rs 500 and Rs 2,000 notes. And an official said that the government has stepped up printing of new Rs 500 notes. But patience is wearing thing already.

On Wednesday, a cash-carrying van was attacked in Assam and the driver killed. In separate incidents from other parts of the country, three deaths, apparently due to stress, were reported.

The Centre has directed intelligence agencies to closely monitor law and order situation in the country and regularly inform the home ministry so that adequate preventive measures can be taken before a major flare-up.

The home ministry has issued two separate advisories to all the states, directing them to provide adequate security to all banks, ATMs and vehicles carrying cash.

Home ministry officials said that enough cash is not in circulation and that’s leading to chaotic situations outside banks and ATMs. Officials also maintained that people are hoarding smaller denominations and not spending enough Rs 100 notes after getting their old currency exchanged. “Due to huge gap in demand and supply of currency, the cash shortage will continue for at least one more week,’’ an official said.

Meanwhile, banks on Wednesday, in a desperate move that they hope will shorten queues, started using indelible ink on the right hand finger of people coming to exchange old notes to ensure that the same people don’t come repeatedly to banks. Economic affairs secretary Shaktikanta Das said that indelible ink has been sent to all regions of the country.

“Indelible ink” was the fourth most searched topic on Google in India on Wednesday.