associate sponsors


Bank unions slam demonetisation, say move has led to 'financial chaos'

Vadodara: Two leading bank unions on Monday criticised the government over demonetisation of Rs 500 and Rs 1,000 notes, saying the move has led to "financial chaos" across the country.

Representational image. PTI

Representational image. PTI

In a letter to Indian Banks' Association (IBA), All India Bank Officers' Association (AIBOA) and All India Bank Employees Association (AIBEA) said the decision to withdraw the high-value notes was taken without proper planning or preparation.

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.

"Chaotic situation is prevailing at the bank branches and this is unbearable for both customers as well as bank employees and officers," S Nagarajan, General Secretary of AIBOA, and CH Venkatachalam, his counterpart at AIBEA, said in the letter to IBA, the apex body of bank managements.

There is a huge shortage of Rs 100 notes which are now in great demand for routine needs, while most customers are not willing to accept the new Rs 2,000 bill, they said.

"The Centre and the Reserve Bank must be fully aware that already there is a huge gap between the indent and supply of Rs 100 notes.

"For example, in 2015-16, as against the indent of 535 crore pieces of Rs 100 notes, the supply received was only to the tune of 490 crore pieces," according to the letter.

"One cannot understand the reason behind banning the existing Rs 500 notes and not providing new supply of Rs 500 notes in time," it added.

Most of the 2.20 lakh ATMs across the country are closed or partly functional. 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.

Nagarajan and Venkatachalam requested the IBA to ensure the RBI supplies adequate cash in denominations of Rs 100 and new Rs 500 notes to ease pressure on banks and provide relief to customers.

Updated Date: Nov 14, 2016 17:41 PM

Also Watch

Firstpost in Russia: Moscow to St. Petersburg, on a free World Cup train
  • Monday, July 2, 2018 Social Media Star: Richa Chadha, Kunal Kamra talk about their political views, and why they speak their mind
  • Tuesday, June 26, 2018 It's A Wrap: Swara Bhasker talks about Veere Di Wedding and Twitter trolls, in conversation with Parul Sharma
  • Tuesday, June 19, 2018 Rahul Gandhi turns 48: Congress chief, who once said 'power is poison', should focus on party rather than on 'hate Modi' mission
  • Monday, June 4, 2018 It's A Wrap: Bhavesh Joshi Superhero makers Anurag Kashyap, Vikramaditya Motwane in conversation with Parul Sharma

Also See