MUMBAI/KOLKATA/BENGALURU/NEW DELHI: The continuing shortage of cash forced banks to ration withdrawals and down shutters early as the supply of bank notes from currency chests failed to keep up with the demand. Bank of India’s iconic main branch at Fort in Mumbai was forced to shut early as angry customers waited outside. Several bank branches ran out of notes , including Rs 2,000 ones, within a few hours of opening for business on Tuesday, the first day of the pay day week . Most private banks in the country’s financial capital received around Rs 20 crore, much below their daily cash requirement.Bankers said although customers are entitled to withdraw up to Rs 24,000, branch managers are using their discretion and rationing payouts to avoid shutting down their cash counters early. Intermittent supply of cash to bank branches, the aversion to accepting Rs 2,000 notes, dry cash vending machines and shortage of new Rs 500 notes will inconvenience pensioners and employees who will visit bank branches in large numbers.The government said there is enough cash to meet the demand but bank branches have a different narrative.In Kolkata, the footfall in bank branches during the salary week doubles. The cash crunch continues here, like in most cities and towns across the country. An SBI branch manager in south Kolkata said, “We are already experiencing the rush as some private companies have credited salary. We’re giving full cash to branch customers as per RBI guidelines but it’s not possible to provide full cash to non-branch customers.”“We are asking for more cash but not getting it. In the last two weeks, we have got only 25% of what we asked. The supply of Rs 500 notes is minuscule. We are not getting Rs 500 notes and it is mostly going to ATMs,” the manager said.A leading public sector bank branch in Bengaluru’s MG Road said the bank has never refused money to customers because of lack of cash. However, 99% of the customers requiring lower denomination currency are returning without cash. He attributed this to people flatly refusing the Rs 2,000 note. The bank’s demand for Rs 1 lakh in Rs 100 denomination came after more than five days while the Rs 500 note never came, he said. He said a massive rush was expected from Wednesday as there was not enough cash in smaller denominations to meet even 1% of the demand.Another public sector bank manager in the city said the bank’s 46 branches in the city received Rs 20 crore this week, a tiny part of the demand. “We have cash in Rs 2,000 denomination but customers don’t want it,” he said.A cash handling logistics employee said branches get preference over ATMs and the ATMs are decided according to the number of transactions in a particular machine. In New Delhi, private banks are facing the brunt. “My cash ran out by 12 noon and after that we are only accepting deposits and catering to other services such as drafts,” said a private sector bank manager in Delhi.State-run banks are pulling out all stops to ensure they are able to cope with the salary rush. “We have rolled out micro ATMs at government offices. We have put up 10 counters at New Delhi Metro station and our mobile ATMs are placed in busy areas and near government offices,” a senior Punjab National Bank official said, adding that more counters were being opened at branches. He said private sector employees may face problems but government employees may fare better as some departments have already drawn advance cash.Bulk of the money in Mumbai is going to large private banks and public sector banks. “There is no fixed formula for distribution of notes and RBI appears to be distributing notes based on number of customers rather than value of deposits,” said an official with a private bank.According to central banking sources, part of the problem was hoarding of notes by individuals and retailers. As against thousands of crores pumped out by banks daily, the amount of legal tender deposited was very small.