Hyderabad: While the Reserve Bank of India’s official stand is that there is no need to hoard as there is enough currency, the public in Telangana state won’t see much of it till at least November 24, as the ATMs will remain dry.
For the last two days, most ATMs in the state have been empty and people, especially in rural areas, are suffering. Sources say that RBI officials have informed state finance minister Etela Rajender that the present situation will continue till November 24.
Mr Rajender had met the RBI regional director, general manager and top officials of the State-Level Bankers Committee to discuss the issue.
Sources in the finance department said the minister asked the bankers to ensure that ATMs across the state had low denomination notes. The officials, however, informed him that the present situation would continue till November 24.
RBI step to boost payment of taxes
The Central government has allowed people to use the demonetised Rs 500 and Rs 1,000 notes to pay government taxes and arrears apart from at hospitals, medical stores and at a few other places.
Sources said the Central government is of the opinion that if people are allowed to deposit their old currency and withdraw money from ATMs, they will not pay their tax arrears, which they would otherwise do to get rid of their old notes. A senior official said the government’s view is that people should use demonetised notes to pay taxes or deposit the same in their accounts. This way the state government’s incomes and also bank deposits should increase. This is the reasoning, say sources, that the RBI has stopped supplying low denomination notes to banks to fill ATMs.
Once the deadline of November 24 fixed by the Centre to use demonetised notes to pay taxes ends, the RBI will supply enough notes to fill the ATMs, said an official.
