Cash crunch- Irate mob force shuts banks in Kozhikode, banks seek protection
After an irate mob of customers forced two Kozhikode banks to shut down over cash shortage, banks are seeking police protection. The mob on Tuesday, forcibly closed down Villangad Grameen Bank and Perambra Syndicate Bank.
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Customers were irate over the bank failing to disburse money for 5 successive days. The bank only accepted deposits but not withdrawals. The situation had to be brought under control by the police. Soon after this incident, an Assistant Manager of Canara bank in Kozhikode wrote to the District Commissioner seeking police protection since there was a shortage of cash.
The assistant manager wrote to the District Collector asking for police protection after the bank had to suspend cash withdrawal owing to shortage. The letter states that the bank had to resort to suspension of withdrawals since there was limited supply of currency. The letter also states that limited supply of currency had affected normal functioning of the bank.
The assistant manager sought police protection anticipating public unrest on suspending payments of cheques by the bank. The letter is now being viewed as a reflection of the situation that banks are presently in with crowds returning to make a beeline post payday.