Nagaland: Banks hard- pressed for cash again

Nagaland: Banks hard- pressed for cash again

Morung Express News
Dimapur | November 28


Banks in Nagaland are once again hard-pressed for cash of lower denominations. On Monday, a number of private banks reported that they have run out of cash, even the newly introduced high denomination Rs 2000 notes.


Going 20 days since the announcement of the demonetization move by the Prime Minister, citizens continue to face inconveniences with no respite, even as banks struggle to accommodate the never-ending surge of people coming in to withdraw money.


On November 24, the Reserve Bank of India (RBI) remitted only 167 crore to Nagaland from the 400 crore sought by the SBI and the Nagaland Finance Department. Clearly, the amount will not last long, given the fact that it will have to feed not only the SBI branches but also the private and public sector banks.


Further, the 157 ATMs in Nagaland consume not less than 15 crore in a day. A reason why many banks have begun giving only limited amount to the customers.


SBI assistant manager, Regional office, Thangboi Lunkim said Nagaland may get the next installment of cash from RBI after November 30.


Lunkim said he had spoken to RBI officials and was told that some money would be coming within 7 days from the printing press in Kolkota. He also said it was becoming difficult to provide money to private banks since the cash send by the RBI was not enough to accommodate even the SBI branches.


“Private banks should try to make their own arrangements to get cash,” Lunkim suggested.
The SBI official also stated that it has become very awkward to keep on asking for more cash with the RBI not being able to meet the demands of the banks. Not wanting to anticipate what would happen to SBI if cash was to run out, Lunkim said one can only hope that the RBI come to the rescue in time.


In addition, with Hornbill festival just two days away, there is anticipation that the lack of cash in the banks and in the hands of the customer alike is sure to take a toll on the spirit of the festival.