Bhubaneswar, Jan. 17: A day after the Reserve Bank of India (RBI) raised the limit of ATM withdrawal to Rs 10,000, the money vending kiosks ran dry at several places here.
As early as 11am, the State Bank of India (SBI) ATM at Bomikhal had run out of cash, reminding the kiosk's security guard of the initial days after Prime Minister Narendra Modi announced demonetisation on November 8.
"A large crowd gathered in front of the ATM today. Unlike previous days, most people withdrew the full permissible amount and the machine ran out of cash," he said.
Manoranjan Kar, 57, a government employee and resident of GGP colony, was disappointed to learn that the ATM near his residence had no cash.
"I needed to withdraw Rs 8,000 in cash. The announcement to increase the ATM withdrawal limit has come as a relief. However, when I went to the Axis Bank ATM near my home, the no cash board was already hanging at the kiosk's gate," he said.
Kar tried his luck at the nearby SBI ATM, but there too the money vending machine had run dry. "I had to visit the bank branch to withdraw the money and as a result I got late for office," he said.
Kar and several others who had lined up outside ATMs to withdraw cash said that real relief would come only when the RBI increases the weekly withdrawal limit from the present Rs 24,000 for savings account holders.
"The ATM withdrawal limit has been increased, but the weekly bar remains the same. I am eagerly waiting for the day when the RBI decides to raises the weekly withdrawal bar," said Ashutosh Mishra, 54, businessman and resident of Nayapalli.
"I started renovating my house on October 25, but the sudden decision to demonetise high value notes delayed work and it is yet to be completed. Cash is required for the renovation job and the cap on weekly withdrawal limit does not help. The contractor also does not accept payments in debit or credit card," Mishra said.
The RBI, however, has raised the weekly withdrawal limit for current accounts holders from Rs 50,000 to Rs one lakh. The move aimed at providing relief to businessmen, has left many disappointed.
Manohar Behera, 65, wholesale grocery dealer at Unit-I market, said the banks were not giving current account holders the permissible amount and the recent announcement to raise the limit would take some time to materialise. "Earlier, when the weekly withdrawal limit was Rs 50,000 for current account holders, banks did not give the entire amount fearing shortage of cash. Now, when the limit has been doubled, the response of banks remains unchanged," he said.
Behera said he visited the SBI main branch seeking to withdraw Rs 80,000 from his current account but was refused. "The bank officials said they cannot dispense such huge amount for fear of shortage of cash," he said. Bank officials, however, refused to comment on the lack of availability of cash at ATMs.
"It will take some time for the situation to ease," a bank official said.
State Bank of India official P.P. Panda said that with the increase of withdrawal limit, the queues outside the banks would get smaller.
"The cash situation has certainly improved. It may take some more time for us to dispense the entire permissible withdrawal amount for current accounts holders," she said.
