Finance ministry asks banks to hire retired staff to deal with cash rush
The notification, dated nearly a week before Modi announced that 500 and 1,000 notes would cease to be legal tender, urged banks to calibrate 10% of their ATMs with notes of only 100 denomination. So banks are paying using soiled but usable notes as RBI has relaxed that rule.
They also highlighted heavy work pressure on employees and officers at bank branches in the wake of demonetisation which has led to customers rushing to exchange the now defunct notes.
The Reserve Bank of India (RBI), along with the head offices of most commercial banks, have asked banks not to collect photocopies of customers’ identity proof for exchange of old currency notes. Sanghani, a former BJP Member of Parliament and Gujarat agriculture minister who was in Delhi to meet Santosh Kumar Gangwar, minister of state for finance, said the minister had assured him of corrective measures in the next few days.
The RBI said, “There were reports that some cooperative banks were not strictly adhering to the instructions issued in connection with the withdrawal of legal tender status of the existing Rs 500 and Rs 1000 bank notes (specified bank notes)”. This has put additional pressure on the staff and customers are compelled to visit branches to withdraw cash from their accounts, the two unions said.
“Till yesterday, only Gujarat based DCCBs were barred from accepting old notes. They are totally dependent on the DCCBs and the credit co-operative societies which are affiliated to DCCBs for their banking needs”, Mushrif said. “If no decision is taken immediately, people will have no other option to start a mass agitation against this move and government will have to bear the consequences”, said Radadiya.
Banks may hire retired staff to deal with cash rush