Once Again, Severe Cash Crunch In Banks Of Telangana And Andhra Pradesh, Imposed Unofficial Restrictions On Withdrawals

Once again banks in Telangana and Andhra Pradesh started imposing limits on withdrawals.

According to sources, banks put an undeclared restriction on the withdrawals from accounts.

The reasons behind such restrictions are less cash deposit in the past three months, rumours about FDRI Bill.

It is also reported that bank customers are preferring premature withdrawal of term deposit. In the normal situation, banks receive 60% of the total cash disbursals in the form of deposits which has fallen down to 20%.

It may be mentioned that India’s central banking institution, Reserve Bank of India (RBI) also cut the cash supplies.

Adding to all these issues, huge withdrawals due to Sankranti created a shortage in the banks.

The unofficial restrictions on withdrawals in semi-urban and rural areas are Rs 5,000 per day whereas, in urban areas, the limit is between Rs 10,000 and Rs 30,000.

An official of a bank said that every bank branch maintains cash reserves of Rs 60 lakh per day. However, now, they do not have cash reserves of even Rs 20 lakh, he claimed. As it is difficult to meet daily withdrawals with this cash reserves, banks stopped loading cash in ATMs, he added.

Shortage in cash supply may continue for next 10 days. On Thursday, officials of the government also held a meeting the bank officials.

Mr. S. Manikandan, Telangana State Level Bankers Committee convener and SBI General Manager also said that the situation may continue for another 7 to 10 days. #KhabarLive