Short of Change

Exactly a month after Prime Minister Narendra Modi announced the demonetisation of Rs 1000 and 500 rupee notes, people in the city are still struggling to withdraw cash, with many ATMs still out of cash and not enough notes of lower denomination in circulation. 

Sajeevan Putharikal, a city-based entrepreneur, has been facing immense difficulty in running his registered chit company, due to the cash crunch, a by-product of the demonetisation. His business collection had nearly halved over the last month, as the collection executives refused to accept the invalid notes. Now, paying his collection agents too has become a challenge. “It was difficult to pay their salaries as many of the staff members didn’t have a bank account. We couldn’t even get their salary accounts activated, which was a time-consuming process, as bank employees were focusing on deposits till recently. I had to dip into my savings and borrow from my father to ensure I paid the salaries on time,” explained this Perungudi resident, adding that many small businesses are in a similar predicament. 

The biggest problem faced by many is the lack of enough notes of lower denomination. Suresh, a vendor at the Koyambedu Flower Market, said that people often purchase flowers for Rs 200 but offer a Rs 2,000 note. “We don’t have enough notes of smaller denomination to give out. We don’t accept credit or debit cards – so it does get difficult,” he said, adding that he hasn’t been depositing the money in the bank but using it to run his household, thus skipping the long queues at the banks and ATM. Homemakers, like Padma Ravi, say they have to run from pillar to post to get enough small change to run the household. “Most shops and even restaurants don’t have change for Rs 2,000. How does one get change for such a big amount, to manage petty household expenses?” she demanded.   Businessman M Ahmed, based in Periamet, said that apart from withdrawal limits set by the government, the banks run out of cash and begin to ration the available amount. “All cash- intensive businesses have come to a standstill. Though the withdrawal limit is fixed, the banks often don’t have enough money to meet the demands of all the customers. There is rationing going on every day. Daily bank visits are a must for cash withdrawal, which is a huge hassle,” he added. 

The cash crunch has worsened due to the non-functioning of the ATMs. Kumar M, an IT professional and resident of Perambur, said almost 90 per cent of the ATMs in his locality were either out of cash or were malfunctioning. “It has been a month since the demonetisation and the ATMs run out of cash easily. The ATMs are filled= late at night and there is a long queue as early as 5 am. I have been managing with bare minimum, but if the cash crunch is not fixed, the situation could get out of hand,” he concluded.