Heavy rush at banks and ATMs is expected to enter round 2 as lakhs of employees across India struggle to deposit or withdraw their salaries. The Pay Day, on December 1, comes with fresh bag of challenges for the Union Government, bank employees, central bank and the people.
With several ATMs still remaining dry, managing the salary rush is going to be a true litmus test for Indian banking system. The government and banks, reports say, have been preparing for this day.
Here are the few steps taken by the Finance Ministry to help banks manage the cash crunch in next one week:
#Reserve Bank of India has started pumping more money into the banks from Wednesday evening to ensure enough cash flow for salaries. This increase in cash supply, according to the government, would continue till December 7.
#According to reports, the government has been holding back on cash flow for past two days to ensure enough currency to ingest into the system post pay day.
#Currency printing presses are working round the clock to mint new notes. "We have asked 4 printing press to work on three shifts, even lunch breaks have been cut to ensure that we meet the current demand in the market for the new notes," a top official in finance ministry told India Today.
#The currency printing presses of the central bank have moved to print the much-in-demand `500 notes to ease the supply. “At least 30,000 notes are being printed daily," said a senior official in finance ministry.
#According to the sources, banks require an average of Rs 123 crore worth of currency, but currently less than 40 per cent is reaching their doorstep. To ease the problem army choppers are ebing used for cash supply. "Even at a distance of 4 kilometers from the minting press, we are not opting for transport via road. The idea is to ensure faster turnaround time for refuelling, especially in north-eastern states," said an official working closely with the RBI.
#The central bank also said that it would increase cash supply to banks with salary or pension accounts by 20 to 30 per cent.
#News reports also claimed banks have asked large companies to provide prepaid payment cards to staff in lieu of cash.
#The government has asked banks to encourage the online banking and e-wallets. Even though, the digital push is not likely to wipe out need for cash anytime soon, but it will ease the pressure on the government.