New Delhi: Payday chaos is expected to hit banks across the country from Thursday. The banks are bracing themselves to face a huge payday rush as people are likely to line up to take out money after their salaries are paid for their monthly expenses. It is predicted that the chaos may last at least up to a week.
The All India Bank Employees’ Association (AIBEA) on Wednesday warned that if the Reserve Bank fails to provide adequate cash in view of the salary rush, it may lead to serious law and order issues.
Sources said RBI officials have assured the finance ministry that it has made ample preparations to deal with the payday rush. RBI and finance ministry teams are now closely watching the situation round the clock. The banks are expecting a cash crunch to last for at least five to six days due to the payday rush as people take out cash for their requirements.
People urgently need cash to pay their domestic helps, drivers and grocery bills, among others, at the start of every month. The RBI is likely to disburse 25-30 per cent more cash to the banks from Wednesday night. This, however, may not be enough in case the rush is a lot more than expected.
