Banks Ask Employers to Give Prepaid Cards, Not Cash for Payday

To brace themselves for payday, banks have also put an internal limit on withdrawal.

As pay day nears, banks have another hurdle to face to as many salaried employees and pensioners depend on liquid cash.

To tackle the cash crunch, banks have internal daily cash limits per account, while the government asked the private companies to make digital payments to their employees.

Quoting sources, The Indian Express reported that banks have even asked companies to give prepaid payment cards in lieu of cash.

We have made arrangements, and will be able to say whether these are adequate or not only on the day when money comes into the accounts of pensioners and salaried people. We’re hopeful that there won’t be any problems.

Top official from the Bank of Maharashtra

The RBI and the government have been revising withdrawal limits to meet everybody’s monetary necessities.

The withdrawal limit at ATMs is Rs 2,500 while banks have a weekly withdrawal limit of Rs 24,000. Since banks are not receiving 35-40 percent of the total cash requirement, many customers are resorting to digital modes of payments.

The RBI has also doubled the balance limit on prepaid wallets to Rs 20,000 till 30 December to allow people to have more digital than cash transactions.

Read the full story on The Indian Express.