Nagpur: If indelible ink has shortened queues but banks still are running short of cash. Monday was the worst day after demonetization, said sources in banking sector. Several public sector banks in the city were not able to allow withdrawals of Rs24,000 and Rs50,000 per week allowed for saving and current accounts respectively. A fresh supply from RBI on Tuesday is expected to ease the situation.A number of banks also stopped conversion of old notes. Of the 10 branches of both PSU and private banks visited by TOI, seven had stopped exchange of notes though they allowed withdrawal on a limited basis. These include ICICI Bank and Axis Bank at Shankar Nagar, Union Bank Dharampeth, and Central Bank Abhyankar Nagar. The shortage continues despite RBI’s claims that enough cash was available.For withdrawals, customers were being requested to settle for a lesser amount against what they demanded. Nearly a week after the announcement, new Rs500 notes haven’t reached the banks though reports suggested they might come on Tuesday. Since there are no Rs500 notes, despite the allowable limit of Rs2,500 people are only able to withdraw Rs2000 from ATMs. Only a handful of ATMs were working.TOI got confirmation from senior management sources in three PSU banks having a major presence in the region that cash was short and customers were asked to settle for amounts less than what they were entitled to.“Given the rate of withdrawals and conversions our bank, which has nearly 100 branches in the city, needs Rs20 crore a day. However, RBI has been only handing out Rs5-6 crore that too after a gap of 2-3 days. We are not in a position to allow withdrawal up to peak limits,” said a senior manager in a PSU bank, requesting anonymity.“It has been a tight rope walk for us. There is limited cash with the bank for withdrawals, filling up ATMs and conversion of old currency. There has been no currency remittance from RBI since November 17. So customers are being persuaded to take less,” said a source in the Bank of Baroda. Sources in Central Bank of India too confirmed withdrawals were cut to less than half of what was being demanded. Regional manager Vipan Kumar refused to comment.TOI team came across a number of bank branches that had run out of cash. SBI’s Medical Square Branch did not have any cash in the morning hours and customers were asked to come after 2.30pm. ATM attached to the bank too did not have any cash. There was no cash in Bank of Maharashtra and Union Bank ’s Dharampeth branches.At Syndicate Bank’s Kingsway branch, officials admitted of a cash crunch. Withdrawals are more than the cash bank has, a source said. Customers were seen depositing Rs49,000 and lining up for withdrawal of Rs50,000. Keeping deposits at Rs49,000 helped them avoid quoting their permanent account number (PAN).