GTDC FIRST TO GO CASHLESS
* Goa Tourism Development Corporation becomes Goa’s first state-owned organisation to adopt 100 pc cashless transactions
* GTDC says it has systems to facilitate cashless transactions for hotel reservations or any other tourism service
>> See pg 3
----------------------------------------------------------------------------------------------------
ADDING TO THE BURDEN
• From today, more rush likely at banks to withdraw salary and pension
• Banks still struggling to get adequate supply of currency
• New Rs 500 note still in woefully short supply
• Supply of Rs 100 note less than the demand
• Most ATMs ran out cash and remained shut on Wednesday
-----------------------------------------------------------------------------------------------------------------
It's pay time! Banks, which are facing liquidity crunch since demonetisation was announced, are facing an even more uphill task, as heavy withdrawals on account of salaries and pensions are expected from December 1.
November 30 was the pension day and as a result banks saw more withdrawals than earlier. A manager from a public sector bank said, “We got money from the Reserve Bank of India (RBI) on previous Saturday. But, we had heavy withdrawals due to pension on November 30. And, we are now wondering where to get more currency from?”
Today, ie December 1, this problem is likely to get even more complex because that’s when salaries get credited to accounts of government employees. From then on, this problem will get severe, as private companies too will start crediting salaries into the accounts of their staff.
Meanwhile, many are yet to see the new Rs 500 note in Goa, although banks have started disbursing it from last week. Another banking source said, “We have disbursed new Rs 500 notes, but we haven’t seen a single such note coming back to us as deposits. This shows that people are not spending new Rs 500 notes.”
This becomes a vicious circle. People get notes from banks, but don’t spend them for fear of falling short of currency, and again approach banks for more notes. Most ATMs in Panaji were dispensing only 2,000 notes. People were seen coming out of ATMs frustrated that they couldn’t get new Rs 500 and Rs 100 notes.
Many other ATMs in Panaji and nearby suburbs had their shutters down leaving people with no choice but to go to banks, which as it is have less cash. Interestingly, a manager of a bank said, “We have not even distributed the new Rs 500 note as yet.”
As the new Rs 500 note is in awfully low supply, the demand of Rs 100 has shot up. Banks are struggling to get adequate supply of Rs 100 as well. Two factors emerge from this. One, terribly low supply of new Rs 500 notes and Rs 100 notes. Two, the sense of panic, which results in people not spending whatever cash they have for the fear that they may not have cash tomorrow.
Normally, people don’t land at banks in large numbers on the day their salaries and pensions get credited. But, in the current circumstances, they are going to do so. As a result, bankers are expecting longer queues from December 01st at branches and outside ATMs.
