Manipur, reeling under an economic blockade, has been hit badly by the notes ban. (AFP photo)
Highlights
- Manipur reeling under economic blockade by tribal groups
- Locals queue for hours to get small sums of cash
- Manipur has lowest banking coverage of all Indian states
While the month since 500 and 1,000-rupee notes were scrapped has been difficult for millions of people across India in Manipur, already reeling under a protest that has inflamed the price of essential commodities, it has been especially trying.
An economic blockade launched last month by tribal communities in Manipur against the proposal to carve seven new districts has raised the price of petrol to Rs 300 a litre and cooking gas cylinders to Rs 2,000 in the grey market.
"What (Prime Minister Narendra) Modi ji did is a good step but how it is being implemented in Manipur is wrong. My mother is at hospital, I have an emergency. We need Rs 1.25 lakh but the bank ATMs are giving only 2000 rupee noes that too after standing for hours. People will die, is there any option?" Miboi Meitei, a local resident, told NDTV.
People in Manipur's capital Imphal queue up in front of ATMs right at dawn. The usual wait is for three hours before one can get only Rs 2,000 a day from any of the few working ATMs.
"We are having so many difficulties here. We don't get Rs 500 notes in the ATM, we are tired of these queues, moreover there is economic blockade," said Sunila, a student who spoke to NDTV outside an ATM booth.
Manipur has the lowest banking coverage of all Indian states. According to the Reserve Bank of India, 32 banks operate in the state. While north east India has over 3,700 bank branches, Manipur has only around 200. And of these, only around 40 are in rural belts.
On an average, each bank branch serves about 30,000 people in the state. The state has 243 ATMs, of which 194 that belongs to the State Bank if India.
Even an entire month after the demonetisation, many banks even in Imphal are running dry and bear ominous "no cash" notices. Last week, angry customers vandalised two bank branches.
"It is due to less issuable notes coming from Reserve Bank to the link banks. We are drawing from SBI and UBI, but the money is limited amount. We are giving out Rs 10,000 on one day Rs 4,000 on another and today we cannot pay due to shortage of currency," said A Mahendra Singh, General Manager, Imphal Urban Cooperative Bank.