Banks at many places are not in a position to disburse even the current limit of Rs 24,000 per week due to cash crunch and are rationing the valid currency depending on cash availability.
Average frequency of cashless purchases by Indians has gone up from 1.5 times per week to 3 times per week within 40 days of demonetisation announcement.
With 50 percent or Rs 7.5 lakh crore worth of remonetisation complete, queues at banks have reduced substantially and are visibly longer only in poll bound states like Uttar Pradesh and Punjab, he said.
Dattatreya, who held a meeting with the central bank officials and ministers of Telangana here, asked the banks to take measures for waiver of service charges to all the users of net banking and cards to encourage cashless transactions.
With banks closed for three consecutive days from today and ATMs in the city still not functioning to full capacity, the ongoing cash crisis may escalate further leaving residents high and dry for want of cash during the weekend.
As on September 30, 2016 there were 2,11,594 ATMs of banks and 14,324 white label ATMs working across the country.
The Reserve Bank also said that it "will shortly" issue Rs 500 denomination banknotes in the Mahatma Gandhi (New) Series, without any inset letter, bearing signature of Governor Urjit R Patel.
The government has decided to "exempt services by an acquiring bank to any person in relation to settlement of an amount up to Rs 2,000 in a single transaction transacted trough credit, debit card or other payment card service", sources said.
CNBC-TV18 learns from sources, almost two lakh ATMs out of 2.1 lakh ATMs in the country have been recalibrated. Almost 95 percent of ATM recalibration work has been completed but only 30 percent ATMs are being loaded with cash daily. Seventy percent ATMs are loaded with cash but on an infrequent basis.
Yes Bank and Ola yesterday launched a mobile ATM service where customers of any bank can withdraw up to Rs 2,000 per card from PoS terminals from Ola cabs located near Yes Bank branch/ATM across 30 locations in 10 cities of the country.
Initially, the government was expecting that at least Rs 3 lakh crore of cash in old notes would not be deposited in banks due to fear of scrutiny by tax authorities.
People in the country, despite facing hardships, are supporting the Prime Minister's demonetisation move, which is in the "greater interest our nation", she told reporters.
"There should be criminal action against 8,000 odd loan defaulters including liquor baron Vijay Mallya for failure to repay the loan amounts...pegged at Rs 80,000 crore," AIBEA general secretary C V Venkatchalam told reporters here today.
While several banks have limited cash withdrawal due to the shortage of currency in their chests, a number of ATMs are not in operation.
Over 4,800 petrol pumps across the country are dispensing Rs 2,000 per card a day through POS machine swipes and have dispensed Rs 65 crore in the past two weeks.
The company, which has just completed integration following the buyout of Nixdorf, now manages a little over 1,05,000 ATMs out of the total 2,04,000 and close to 28,000 PoS machines in the country.
According to sources, banks are disbursing Rs 10,000 crore via branches and ATMs per day. ATMs continue to be short of cash even as the payday cycles is set to start.
Meanwhile, RBI restricted withdrawal limit from Jan Dhan accounts up to Rs 10,000 per month. "Total cash influx in Jan Dhan accounts is Rs 30,000 crore (approx) and the new RBI guidelines came following reports of its misuse," said RBI.
The decision is aimed at discouraging hoarding of valid currency notes and increasing its circulation to mitigate cash crunch following the demonetisation of old 500 and 1,000 rupee notes.
CLSA in its report called â€˜The demonetisation reset‘ points out that this would lead to large disruptions in the near term but sees long term story attractive. Various broking firms have tried to gauge the impact of short term disruption that sucked cash out from the economy.
The announcement came as the South Korean electronics giant is seeking to ensure a smooth succession to Lee Jae- Yong, the firm's vice chairman and scion of the parent Samsung group's founding Lee family.
For example, if someone deposits valid legal tenders (Rs 2,000, Rs 500, Rs 100, Rs 50, Rs 20, Rs 10, Rs 5) of Rs 4,000, the withdrawal limit for that person would rise by Rs 4,000 over and above weekly withdrawal limit of Rs 24,000.
Despite hardships and long wait in ATM queues, people are supporting Prime Minister Narendra Modi‘s demonetisation move that is aimed targeting corruption and terror financing, Arjun Meghwal, Union Minister of Finance told CNBC-TV18.
Scarcity of essential commodities is feared in some parts of Odisha with transportation of goods badly hit by the limit on withdrawal of cash from accounts and ATMs since the Centre's demonetisation move.
Going forward there will be good availability of liquidity and digitisation of the banking sector will lead to behavioral and client changes, says Shyam Srinivasan, MD and CEO of Federal Bank.