ATMs STILL DRY
* Long queue at many places as a large number of ATMs are still not functional
* Even the functional ATMs at many places could dispense only Rs 2,000 notes
* Frustration and anger were also visible at many places where banks and ATMs soon ran dry
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New notes worth
Rs 4.7 cr seized
BENGALURU: In the biggest seizure of cash in new currency post demonetisation, the Income Tax department on Thursday confiscated Rs 4.7 crore during searches in a dozen premises in Bengaluru and other locations.
Officials said the searches were launched on the premises of two engineers, working with the state government, and some "connected persons".
A team of over 50 I-T sleuths and police personnel launched operations early morning and searched premises in Bengaluru, Chennai and Erode (Tamil Nadu).
"During the course of searches Rs 4.7 crore cash in new denominations of Rs 2000 and 0.3 crore in old/smaller denominations totaling Rs 5 crore and 7 kg bullion worth approximately Rs 2 crore were found in a flat owned by a civil contractor.
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Faced with currency shortage and long queues, banks on Thursday resorted to rationing of cash at many branches countrywide but met with limited success to handle the huge pay-day rush, while ATMs continued to remain mostly dry, causing hardship to people seeking to withdraw money.
People in several parts of Tamil Nadu even braved heavy rains to get money for their household expenses, while long queues started building up in wee hours before ATMs and bank branches for withdrawal of start-of-the-month expenses on the first post-demonetisation pay day across several other states including Kerala, Gujarat, Maharashtra, Punjab and Haryana.
Having got much less than their regular requirement from the currency chests, many branches ran out of cash in post-lunch hours, even as people complained about being given money even below the permitted withdrawal limits at branches.
Long queue were visible at many places for withdrawal as a large number of ATMs are still not functional. Even the functional ATMs at many places could dispense only Rs 2,000 notes, leaving the customers without lower denomination notes.
Frustration and anger were also visible at many places in semi-urban and rural areas where banks and ATMs soon ran dry.
Metro cities too had similar scenes at many places with patience turning into anger against bank employees for their failure to provide currency other than Rs 2,000 notes.
Bankers said on their part that the situation is expected to continue for another 6-7 days because of withdrawal rush from salaried and pensioners.
Despite claims by various banks that adequate arrangement would be in place to handle the pay-day rush, branches were seen not only rationing the cash, many of them also refused to entertain the non-home branch customers.
A senior public sector bank official said the branches are compelled to resort to rationing because of cash shortage and it is difficult to meet the withdrawal limit of Rs 24,000 per person set by the Reserve Bank.
Some banks were seen disbursing only Rs 5,000 per person while those having better cash availability offered Rs 10,000 or Rs 12,000 per customer.
