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In the fortnight ending on March 13, depositors have withdrawn cash worth Rs 53,000 crore from banks.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.
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.
Source – inventiv