The All-India Bank Employees Association has said the decision to scrap Rs 1,000 notes and introduce Rs 2000 notes has helped hoarding, leading to the currency shortage.

Threatening to launch an agitation and blaming the government and the RBI for the currency shortage in many regions, AIBEA said: “Bank employees are facing the wrath and anger of customers. Customers are shouting and abusing the bank staff for no fault on their part”.

“The problem started with the government’s decision to print Rs 2,000 notes. If withdrawing of Rs 1,000 notes was to prevent hoarding of black money, it is only obvious that hoarding will become easier with Rs 2,000 notes. Hence it is only helping the hoarders,” CH Venkatachalam, General Secretary of AIBEA said.

“When more number of Rs 2,000 notes is printed, there is a natural shortage of small denomination notes like Rs 50, Rs 100 and Rs 200 notes which are most needed. Rs 2,000 notes constitute the bulk of currency supply and hence there is shortage of notes of small denominations. Demonetisation was announced in November 2016. Still many ATMs of banks are not yet re-calibrated to allow the newly designed notes to be kept in the ATMs. This is adding to the problem of shortage and inability of customers to withdraw money from ATMs,” AIBEA said.

“RBI Governor has made a statement that there is adequate printing of currency notes. Then where have the currency notes gone? Why they are not ensuring that banks have enough cash to meet the requirements of customers,” AIBEA said.

“Bank customers are already concerned about the huge bad loans in the banking sector and the loan default by big corporate companies. They are worried about the big frauds taking place in banks. Now, this currency note shortage is creating further doubts in their mind whether all is in well in the banking sector,” it said.

“There are doubts whether cash from banks is finding its way to States like Karnataka where elections are due. The government should seriously address this issue. We have taken up the matter with the RBI and the finance ministry to ensure immediately supply of adequate currency notes to all banks in all States,” AIBEA said.