The Hindu Business Line
accounts and is therefore beyond their immediate reach,” explains Mahendra Singh, the head of four villages in Moradabad district.
Bankers plead helplessness. The Prathma Bank in Khanpur Muzaffarpur, which serves five villages and has 6,000 account holders, has not seen any cash in the past week.
Branch manager J K Singh has collected the passbooks of the farmers who have been lining up at the bank in the hope of securing some cash.
Banks rationing cash
“I ask the head-office for ₹25 lakh in cash and get only ₹2-4 lakh, and that too after 10 days. How am I supposed to satisfy so many account-holdtance ers who have been waiting for so many days with so little cash?” Singh says, pointing to the pile of passbooks on his desk.
If and when the bank gets some cash in the next few days, Singh will hand out ₹500 or ₹2,000 to each account-holder depending on the amount he gets.
“I realise that ₹500 is a pit-