No customers, No money, in banks: Economic crisis awaits for country?

No customers, No money, in banks: Economic crisis awaits for country?

New Delhi, June 8: A new crisis may be waiting for the country. After imposing the new reforms in bank transactions, banks in the country became less crowded. No people, no money, may be the beginning of another crisis?

The Modi’s government’s note ban and the new norms in bank transactions and the hike in service charges is making people think to keep away from banks.

Busiest branches of State Bank branches before being merged has left with very few customer visit. Such branches had their working time from 8 AM to 8 PM, just because of the numerous visitors. An employee at a bank said that there were more than 20 customers whenever the bank is functioning.

Not only state banks, news now coming from other banks are also not so good. Employees point out that the chance for an economic crisis in the country, any moment.

According to sources, it all points to a serious issue that people have lost confidence in banks after the demonitisation. The could even affect the bank’s existance.

The banks are unaware about where the notes of 2000, 500, 100, 50 and 10 are getting disappeared. They also express their doubts that these notes may be hoarded.

New trends in banking

The number of people who come to bank to deposit money had a steep decline. People try to withdraw the money at the earliest if they have money in their account. Theses are said to be the new trends in banking sector.

Pygmy transactions by the small and medium traders had also declined. Previously most of the depositors were in a habit of depositing their daily turnovers, regularly. But now they are not depositing their money in the bank. Salaries credited to accounts are completely withdrawn as early as possible.
The current investment rate is very low. Almost everyone has exchanged the old notes. The current investment is only the 30 percent of the investments made prior to the ban, says a reliable source from Mumbai.

Not only the 2000 ruppee note but also all other denmination notes are also not being returnrd to banks, as people has lost their belief in the whole banking system. And people are keeping those amount in hand.

Two employees of certain new generation in a bank in Delhi, who do not wish to reveal their names, raised their doubt that people may be keeping their cash hoard.

Things went wrong after demonitisation as it did not end up in what the Centre has actually intended to materialise. People were in a thought that the money in their accounts does not belong to them. They almost feel that they will lose the money if they deposit it in the bank.

That’s because of digitalisation. SBI merger had followed this. They started charging for everything like withdrawal of money, using cheques, to use ATM and so on. That is the reason why people became away from banks. If someone needs to roll money for their business, they think it would be better to keep money in their hands.

This will soon emerge as a crisis-hit banking sector.