This is the first pay day after PM Narendra Modi announced the ban of 500 and 1,000 rupee notes.
Pay Day is here and the Reserve Bank of India has assured the government that it is ready for higher withdrawals of cash in the next week, when most employers in the country pay salaries. All government presses are printing the new 500-rupee note to meet the massive demand for cash expected till December 7, the central bank has told the Finance Ministry, sources said.
Here are the top 10 developments of the story:
This is the first Pay Day since Prime Minister Narendra Modi announced a ban on 500 and 1,000-rupee notes to combat black money, which took 86 per cent of the money out of circulation in one go, resulting in a massive cash crunch.
It will stress test the currency ban and bankers expected to deal with angry customers with new currency rationed and banks running out of cash every day. Bank unions have suggested police protection for employees in the next few days.
The State Bank of India, India's largest public sector bank has said it is ready for Pay Day. "We are very much prepared...For the last 20 days, we have been working at 100% capacity," SBI managing director Rajnish Kumar told NDTV.
He said the bank has "made arrangements for orderly handling of queues, seating and even serving water...I don't know what the security arrangements are at other banks, but in our banks you'll find that it is very orderly."
SBI has been disbursing 6,000 crores of cash every day since the notes ban was announced. "Out of this 1,800 - 2,000 crores is through ATMs and the rest is through branches, cash at Post offices, mobile etc," Mr Kumar said.
Government sources said people have been hoarding 100 rupee notes, concerned that they will get only 2,000 rupee notes from banks, which they find difficult to use.
The circulation of 100-rupee notes has gone up to 150 per cent since November 8 when the ban on high value notes was announced.
Opposition parties have accused the government of being poorly prepared to handle the cash crunch after the massive demonetisation exercise, which they allege has punished the poor instead of the corrupt as was intended.
The government has promised that the situation is temporary and will ease soon.
The ruling BJP says the people back PM Modi's notes ban despite the hardships caused and that its recent wins in by-elections and municipal polls across several states is evidence of that support.
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