People are withdrawing money from banks, withdrawal of 53,000 crores in 15 days

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Coronavirus has become a matter of concern for the whole world. The number of its patients in India is constantly increasing. In view of this, complete lockdown has been announced in India till 14 April. Therefore, people are withdrawing huge amount of money from banks in anticipation of emergency.

The highest figure in 16 months
In the fortnight ending on March 13, depositors have withdrawn cash worth Rs 53,000 crore from banks. This figure of cash withdrawal is the highest in the last 16 months. According to the Reserve Bank of India (RBI), such large withdrawals by depositors occur only during festivals or elections. The central bank said that it has issued so much cash in the last 15 days. As of March 13, the people had a total currency of Rs 23 lakh crore.

Why So Many Withdrawals
Economists in the case say that even though digital transactions have increased, the caution and fear factor dominates in the wake of emergencies. Axis Bank Chief Economist Saugata Bhattacharya said that people were worried about whether they would be able to access banks and ATMs during the lockdown. So for the time of need, they made huge withdrawals from banks.

It is known that due to Corona, banks are asking people to adopt online methods for transactions such as net banking, UPI, etc. Giant e-commerce companies like Flipkart have limited delivery service. That’s why people are shopping offline. They are in need of cash for this. The people who used to buy groceries and other necessities online, are now buying from local shopkeepers.

READ  About 100 crore people from 35 countries locked in homes, MSME sector adding $ 1183 billion to the economy badly hit, 40 crore daily wage workers most vulnerable to loss

RBI Governor appealed
Reserve Bank Governor Shaktikanta Das on Friday addressed the concerns of depositors, saying that the banking system of the country is completely safe and strong. The decline in shares of banks due to the fall in the stock market will not have any effect on their financial system. He also urged depositors not to panic and withdraw money from banks. Depositors’ money in both public and private banks is completely safe.

Customers do digital transactions
The governor appealed to customers to adopt more digital transactions amid Corona crisis. He said, the crisis of coronavirus is before us, but it will also go. We need to be careful and take all precautionary measures. I leave this to your understanding. Stay clean, stay safe and adopt digital. This situation has become more panicking and fearsome than 2016 demonetization, where people had to stand out of ATM for their own money even during the nights of cold & chilly winters at 11-12 midnight.

56 COMMENTS

  1. It is due to faulty planning on banking services.
    Only few ATM working in a city where lockdown
    Is in force how one will go and withdraw just think. In Hyderabad after 5km one Atm . It is a illplanning which caused heavy withdrawal.

    • Once upon a time a king of a country like us takes donkey for his rides to see his saltanat and his peoples,and he sat backwards on donkey to see any dangers from backside should not come,then one of his minister asked him for sitting on the donkey like this,the king replied to him that he can see any dangers should not come from backside so I am sitting like that.then with some fear he asked him then my highness how you can see danger from the front side! The king replied my donkey will look after front side.dont worry.same condition is here in india.only God will save all of us.

      • If you mean the person on the donkey is our PM Modi, should you not worry about the donkey on which he trusts? That is what majority Indians keep telling him. Never trust a donkey.

      • I am agree with problems arises due to lockdown.
        Many people are facing diffrent kind of challenges in their life.
        People should understand this is a time when survival is utmost important rather than food money etc.
        Once you will secure life,can have all fun.
        Appropriate story is only appriciable!

  2. People are not scared about banking system rather not getting essential items online. It is very clear that majority does not have faith on the sysyem srnse of faith need to be put in people’s mind.

  3. Negative opinion. Huge withdrawal, failure of lockdown. These kind of negative opinions should be stopped by nedia

    • इस समय प्रकृति इंसान के संयम कि परिक्षा ले रही है। जो पास हो गया ओ जीत जाएगा और फेल हो गया ओ हार जाएगा। अभी तक प्रकृति ने संयम बर्ता है , उसका अनुचित दुरुपयोग किया है और करते जा रहे हैं। हर जगह balancing की जरूरत है। अभी समय एक दूसरे की टांग खींचने का नहीं, बल्कि एक जुट रहने का है तभी संकट का हाल निकल सकता है।

      • Really it’s a panic situation for Bankers and it’s big point to spread coronavirus through legal tender or notes exchange in community. Is this is not a community spread

        Govt should act over it and immediately close the bank’s in India

  4. This phenomenon is not unexpected in the current situation of Corona virus pendamic. Peoples are worried if there is shortage of cash in hand and cannot access to bank. One of the reason in India, mostly rural and semi -;rural where online and e-transaction are less done. Most concern is how the authority are taking actions on industrist and businessman who run away cheating our banks.

  5. People are getting scared with all sorts of news emanating from Channels social media. Lots of negativity get spread adding to to the panic. Essential services like Gas groceries banks etc fail to appreciate the situation and try to create anxieties by not answering the phone calls . All essential service agencies need to be sensitized about the availability of services and accordingly keep their customer care centres well equipped. The response from many only adds panicky situation. The feeling that only Vvips and vips can survive among the people should disappear by their responses and reactions.

  6. They have money to from the bank they will take what about poor people and middle class family what they will there salary is hunged up they don’t have money to get medican and for food also what they 21 days curfew what will eat I think we have eat air for 21 days right

  7. Sampada gas agency at bangalore not delivering gas cylinder gas cylinder booked on 24 th march not got delivered order also not created customer care shut down sampada employee not picking up the phone how one can believe that every thing is normal there’s no scarce of any thing it should have been arranged

  8. And that’s why many banks closed their ATM’s….How to pay maids, vegetable seller,car washers,presswalas, newspaper seller etc????….these people need cash money for their livelihood especially this time…we have to keep cash at home for these people…plz understand.. everything cannot go digital at all times…plz cooperate with public also and keep cash in ATMs…

  9. What about Pmc Bank depositors. We can’t withdraw our hard-earned money stuck up in Pmc bank since last 6 months and now for next 3 months. Neither Prime Minister nor finance are addressing our crisis. We have been dying for want of our hard-earned money. We are struggling to survive. We have no other source of income for our livelihood and medical treatment. I m a cancer patient and my chemotherapy and radiation treatment are pending for want of money. We all request Prime Minister and Finance Minister to please intervene in the matter and bail us out from this crisis.

    • Cash rules at the moment of crisis. Situation
      in Hindustan is not that bad, social media
      created hype has led to this. If Human- -Human
      contact is avoided we can win over the virus

  10. People fear just one reasin and Thats Economic Emergency,,,, wherein under Modi and the Bjp,, overnight all your Savings in the bank will belong to the Govt including your properties,, so people fear this dreadfull act by the bjp which is possible anytime

  11. It’s not corona alone. There is a fear factor in the minds of small people with their major portion wealth in banks. The money may be small for people who are well off. But ordinary people have started doubting the banking system and the safety of their funds. Corona is just a trigger for such massive withdrawal. Who knows another Yes Bank like crisis may surface and some bankrupt industrialist will suck out another bank. At that time the RBI may not have funds to repair the damage.

  12. Day before yesterday main branch of PNB Shimla refused to accept cheques for clearing. Moreover failed to do RTGS yesterday due to bank holiday.

  13. why the RBI has not taken any action about co.op banks namely Guru Raghavendra Co.op Bank Ltd. Bangalore .Many people deposited their hard eaened money, but they are not getting back. most of the people are Senior citizens. . these are the reasins why the people are withdrawing cash from banks. Now at least becauze of Cavid-19 the RBÌ and Finance Mister should take some measures to allow the depositors to withdraw money deposiited in Raghavendra co.op bank. pl help the people at this crucial period.

  14. It’s true people have become panic stricken and they are behaving crazy. Such a critical situation and lockdown will have heavy impact on the public. Salaried persons have less to worry about income.
    They are enjoying at home with their family. But what about those free lance artists, with no job and no payment. Their bills have been stuck. How will they fulfil their essential requirements? Likewise, there are many such small business owners who are facing a lot of crisis. God only knows when the situation will become normal.

  15. The people had trust on Govt ..but on other side Banks must take care of suffiecient money available at ATM ..If one spread rumours then it get spread and all will gather to withdraw.

  16. Sir people are scared to keep money in the banks. You see recently what happened to PMC and yes Bank. Now the depositors of these banks are suffering there is no one to help them. Fearing this people are withdrawing their hard earned money for their daily livelihood. Shopkeeper is not accepting card or Paytm he wants hard cash. In this current senario hard cash is playing an important role.

  17. What is going on is the need of the hour
    Unfortunate that the donot understand it is not case of faith in banks in this pandemic cash is king not digitals
    This looks like dooms day and we r talking of faith and digitals

  18. I think digital banking system is not in interest of our economy rural economy is based on cash
    Small investors having 1 or 2 lac capital they selling goods to retailers village to village or weekly market they’re calling ferriwalas they have 40 % market in their hands dur to government policy this chain is broken hence supply of goods broken so condition is down

  19. We are both husband wife are senior citizens. We
    cannot get medicines for diabetes,blood pressure etc.The
    chemists are not answering the telephone.If we send them apps they say no stock.We dont know online banking.How to get
    groceries etc.They are not allowing home delivery.We both cant walk much h or go and send I quee.Our children are abroad.ATM are
    mostly empty.
    Bharti Thakur

  20. People excepting there will be disruption in Banking because of the merger of Banks from 01.04.2020.They expect due to this most of the Bank’s will not work normally

  21. No agency , Authority or politician is solving PMC Bank Depositor’s concern. It is more than 6 month. Sorry state of depositors.

  22. I am even thinking that our FD in banks are safe or not?? Now when recession will come due to coronavirus…what new decision can be taken?

  23. In reality people want to draw from ATM for immediate needs only.

    But now when they find in first two or three ATMs not functioning, then only they think of drawing higher amount in the subsequent working ATMs.

    Banks should keep all ATMs in working and money disbursing condition

  24. Whatelse do you expect from people in the current scenario. All of sudden you get to know that your Rs. 500 note is banned, your are restricted to withdraw money, your are not allowed to go out, etc., Do they have well planning? If they don’t have, then how come you expect from poor people.

  25. RBI and GOI are reducing the interest rate on Fixed deposit made by small investors and pensioners. All interest accrued are taxable. Moreover banks are giving loans to business giants and after sometime it were waive. So common man getting the trust on banking system errodex in recent there years.

  26. Nothing wrong in withdrawal. With liquidity of 20 plus lakh crores in banking system this is 25% of monthly average. We all are used to keeping cash for emergency as there is no guarantee that cards will work or will be accepted. All big talks on TV have never helped a common man. By announcing a Fatva at mid night and seeing Tamasha of helpless people has become a favorite pass time for this Government. And therefore people have lost faith in this government. Government may force people to some extent but Government 8not yet broken the back of camel.

  27. Why media should publish news about withdrawals, and create a panic. Out media is always negative and their news alwas confusing and terrifying.

  28. सबके चेक कलीयर करो वन बाय वन ऐटीम चालु करो सबको ओनलाईन पेमेनट सीखाओ। ऐक दुसरे की टाग खीचना बंध करो सीखने वाले ओर सीखाने वाले को कीतना टाईम लगेगा देखो भगदङ मचानेसे सबको दीमाग मे बूरी तरहा फेल कर दोगे

  29. People became wise by the experience of que during demonetization.and the surmons given by the lund bhakts hamare jawan sima pe kar rahe hain aur tum line me khade nahi rahe sakte ho..Many become martyr in the que itself.

  30. The main reasons are of COVID-19 and people keep for emergency fund. The whole country is buying from local shops and for more days extra buying if the lockdown will extend. Other than grocery and emergency services are shutdown or declin in sales. The workers has withdrawn there money from bank account and goes to there home. Now all the shops are crouded they prepare to take cash. The the fear to limitations of cash withdrawals during the mergers of bank, peoples had learnt from PMC and others and finally the YES Bank example.

  31. It is obvious at the back drop of corona. Nobody knew end of corona. Also such situation never ever happened in past. Therefore, to keep some cash handy for normal livelihood made people to withdraw cash. As the situation will improve, people may use online services rather keeping cash at home. Our fore fathers said ” paisa gathila theva. Kadhitari upayogi padel.”

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