Patna, Nov. 27: The shortage of cash at banks and ATMs continues to make life miserable in Bihar's districts 19 days after Prime Minister Narendra Modi announced demonetisation.

Searching for an ATM that has cash has become a daily job for many. When there is cash, it disappears in hours. And even when an ATM has been recalibrated to dispense the new Rs 2,000 and Rs 500 notes, most people are weary of taking the Rs 2,000 note as it is difficult to get change.

"I need Rs 2,500 immediately for an urgent work and tried not less than 14 ATMs yesterday," said Pushparaj, a civil engineer at Tilka Manjhi locality in Bhagalpur. "Finally, I had to borrow the amount from a grocer in my area who supplies essential commodities monthly to my house."

M.K. Verma, regional director of the RBI for Bihar and Jharkhand, claimed "the situation has improved. We have already recalibrated around 2,000 ATMs in the state."

There are around 7,000 ATMs in Bihar and Jharkhand. Verma was non-committal on when the rest of the ATMs would be recalibrated. "Perhaps it may take a week or 10 days," he said.

The crisis is not limited to ATMs. The initial confidence of bankers that everything would normalise soon seems to have been shaken. Though queues outside banks are less after the Centre stopped the exchange scheme for scrapped Rs 1,000 and Rs 500 notes, many banks are refusing to give Rs 24,000 a person is entitled to withdraw through cheque per week. Sometimes, the banks relent when the customers protest.

Reserve Bank of India (RBI) governor Urjit Patel today told PTI: "The RBI is interacting with the banks every day. They are telling us that the situation is gradually easing.... Currency is available and banks are working in a mission mode to lift currency and take them to their branches and ATMs."

The situation on the ground, however, tells a different story.

Muzaffarpur

Denying customers the Rs 24,000 they are entitled to withdraw by cheque "is a common refrain at banks such as State Bank of India, Canara Bank, Bank of Baroda, Bank of India and Punjab National Bank in Muzaffarpur," said Sonu Khan of Chandwara in Muzaffarpur district.

Sabir Ahmad, who lives on Azad Road in the district headquarters town, said: "However, some of the customers protest and then they are given the full amount."

Shahnaz Shaheen, a student of Mahant Darshan Das Mahila College in Muzaffarpur, said: "Withdrawing money has become a nightmare."

Bankers are also bracing for a renewed rush of customers - pensioners and salaried professionals - when the month turns. SBI assistant general manager C.P. Srivastava said the bank would set up separate counters for the payment of pension and salaries.

Bhagalpur

Roughly 44 of the over 100 ATMs in Bhagalpur were functioning today, and that too for only for a few hours before they ran out of cash. The situation was the same in the banks too.

"I went to the SBI branch to withdraw Rs 10,000 but I was given only Rs 5,000 as there isn't enough cash in the bank," said Sunil Kumar, a shopkeeper at Sujaganj market.

The cash pinch has got many people worried about how to meet the month's expenditures in December.

"I have started convincing many like my newspaper delivery guy, vegetable vendor, etc, to take cheque payments instead of cash but my milkman has refused to take a cheque," said Tarun Ghosh, a medical representative.

Chhapra

Despite a severe cash crunch - only six of the district's over 100 ATMs are functional, according to banking sources - people have been extraordinarily patient, queuing up outside banks and ATMs from early morning. Many of them have to return disappointed and cashless, and even those who did manage to get some cash were not happy.

"It is extremely difficult to get change for the Rs 2,000 note," said Hari Mohan Prasad, who was outside an SBI branch. "They should have stashed the ATMs with Rs 500 notes first."

Bank Employees Federation of India president Dinesh Kumar Singh admitted that cash crunch is the main problem.

Munger

Almost half of the over 94 ATMs in Munger district are defunct, and the new Rs 500 notes are yet to arrive.

"Like common men, I have been facing problems in getting small denomination notes," said former member of Parliament Brahmanand Mandal. "Now, I am worried whether I'll be able to get my pension in the first week of December."

Sarvesh Vijayant, a manager with UCO Bank, said: "All 41 branches of Bihar Gramin Bank in Munger district have been facing acute shortage of currency notes. All the branches depend on the currency chest of the SBI and it has not been meeting the required demand of cash since demonetisation."

Surendra Prasad Karn, an SBI official, denied there was any cash crunch.

"Munger customers will begin getting new Rs 500 notes at ATMs from tomorrow and everything will be near normal," he claimed. "I deny the allegations of shortage of currency."

Darbhanga

Devendra K. Mishra, chief manager of the SBI's Laheriasarai branch, said bankers were under immense stress. "One of our senior staff members, Arun Jha, fainted recently due to the increased workload. He resumed work within two hours after taking medicines. We agree that all the ATMs are not working," he said, expressing hope that things would be better after a week.

Rajesh Kumar, a resident of the Donar area in the district headquarters town, had lined up in front of an HDFC Bank ATM early.

"The anxiety that gripped us initially is over now," he said. "But the requirement of home expenses has dragged me here. The defunct ATMs are adding to problems."

Sangita, a resident of Bengali Tola in the town who was standing in front of an SBI ATM, was more miffed. "Many ATMs remained closed during the crucial phase. Many of them are still non-functional. I have come to this ATM leaving kitchen work," she complained.

Motihari

The situation in Motihari is better than most parts of the state with around 80 per cent of the ATMs functioning, said SBI chief manager Amit Abhishek. He, however, added that "sufficient supply" of currency would further help in restoring normality soon.

"The situation, which had suddenly turned grim following demonetisation of Rs 500 and Rs 1,000 notes, is fast becoming better," said Dwarika Prasad Gupta, a paan shop owner. Several other merchants and shopkeepers also felt the worst of the crisis was over in East & West Champaran districts.

Gaya

Although the rush of money seekers has eased out at most banks and ATMs, the shortage of small denomination currency notes persists.

SBI regional manager Ayazuddin Ahmad said there is no shortage of cash, and that most of the ATMS the SBI maintains are functional. In Gaya and Jehanabad, there are 123 SBI ATMs of which 51 are maintained by the bank. But 22 out of the remaining 72, which are maintained by third-party vendors, are defunct due to technical snags as well as shortage of cash, he added.

Reporting by Khwaja Jamal, Sanjay K Mishra, Gautam Sarkar, Srikrishna Prasad, Rakesh Singh and Alok Kumar