Customers worry over cash shortage in banks
ATM card holders are facing lot of problems due to non-availability of cash in the ATMs in the district, due to shortage of cash supply by the Reserve Bank of India.
Guntur: ATM card holders are facing lot of problems due to non-availability of cash in the ATMs in the district, due to shortage of cash supply by the Reserve Bank of India.
When the farmers sell paddy, rice millers will transfer amount to their Savings Bank account. When they are drawing cash, banks are paying cash in equal installments in the rural branches due to shortage of cash. The farmers are investing the same on the second crop.
When the depositors are withdrawing their deposits, the banks have been giving priority to pay cash to them. Due to non-availability of cash, the district administration is facing difficulty to pay social security pensions to the people. The problem is expected to continue another two months.
The Lead Bank manager, M Sudharsan Rao said, “The RBI is not giving sufficient cash though we are requesting. The Central government is introducing a Financial Resolution Insurance Deposit Insurance Bill-2017, which will give insurance up to Rs 10 lakh deposits. Taking this into consideration, the depositors are withdrawing deposits. Deposits in the banks are falling.”