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  • Category: Miscellaneous

    Where all the money gone?

    Yesterday, I went to an SBI ATM to draw money. It was securely closed. For more than half an hour, I went to many ATMs of various banks. All are without cash. The SBI ATMs in our place Kakinada are closed except for a very few which are not having cash. I went to an SBI bank branch other than mine. They refused to pay money to account holders from other branches. I had to come back to the bank where I am having an account to draw cash. They said the servers are very slow. It took one hour for me to get the cash. While waiting, I came to know that cash availability is short for the past one week. I was given the money in hundred rupee notes. When I asked them to give Rs 2000/ or Rs 500/ notes, they said not available. It seems the higher denomination notes are not much in circulation and hoarded by people again. The public is withdrawing money and keeping with them. Why I do not know? In the shops, they are asking to pay by cash and not by card. Some are demanding 2% to 5% more than the bill amount if we pay by card. What is happening? Where has all the money gone?
  • #625509
    Yes ever since the demonetisation and the switch over to the cash less transactions, people are using less cash and doing more transactions through online. Thus the government and RBI might have felt the need for cash transactions has reduced and might have withdrawn extra cash from the ATM's and also from banks. Now the crash crunch in every city is felt. Not every one is using the cash less transactions and there is a need for small cash to be kept for urgent expenses always. So at least now the RBI must come out with the statement as to why the cash crunch in banks and ATM's.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #625519
    Deleted

  • #625538
    Neeraj, you are correct. I have to forget about cash transactions. I am worried that in future I may have to forget about my cash in the banks also!! At my place, there are queues in front of the very few ATMs with cash. This seems to be the case for the past one week.
    " Be Good and Do Good "

  • #625545
    In Hyderabad, we are not having any problem. But I heard there is some problem of cash in Andhra Pradesh. I don't know the reason. These days 200 rupees notes and 50 rupees new notes are coming in circulation but ATMs may not be able to accept these currency notes as there is some problem with the ATM's software.
    Even we do many transactions by online banking we may require some cash for our small expenses like vegetables, Kirana etc. Socash circulation can't be stopped completely. Probably AP government has to talk to RBI and arrange for more cash for their state so that their people will not face any problem.

    drrao
    always confident

  • #625589
    In Bangalore, I 've not heard much complaints but I read a similar report in Deccan Herald about shortage of cash in Mysore (http://www.deccanherald.com/content/657865/mysuru-dist-faces-cash-crunch.html). There seems to be a shortage that would go on to the end of the current financial year. Similar report is there from Guntur area ATMs.
    It is extremely difficult to go completely cashless, we need cash for autos, buses, small purchases from the cart vendor etc.

  • #625591
    Earlier people were going to bank for cash withdrawal once or twice and at that time sufficient cash was also available.

    As people are using more and more online and card transactions the cash in circulation is decreased. At the same time trips to ATMs are increased.

    Whenever there is a news or rumour of cash shortage people run to ATMs and start hoarding cash till situation eases. This phenomenon is now happening in many cities.

    Knowledge is power.


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