Cash drought in Imphal banks : RBI issues diversion order
Source: The Sangai Express
Imphal, April 12 2018:
To deal with the shortage of hard cash in the banks, the Reserve Bank of India has issued a diversion order and the same is expected to be effected in the next couple of days.
This was conveyed to Chief Secretary, Dr J Suresh Babu by the Assistant General Manager of State Bank of India today.
In continuation of the written letter sent on April 10, the Assistant General Manager of SBI said, "Our Local Head Office, Guwahati has been actively engaging with RBI for ensuring supply of cash to the State.
RBI has been periodically arranging supply through remittance/diversion from other centres etc and ensuring that customers are inconvenienced.
"In the current instance also, after the visibility on chopper/ helicopter availability, RBI has already issued a diversion order and we expect the same to be effected with the next couple of days" .
Earlier on April 10, the State Bank of India had written to the Chief Secretary that the banks in Manipur, except in Ukhrul and Moreh have been facing acute shortage of cash because of non receipt of Cash Remittances from the Reserve Bank of India.
Stating that the banks in Manipur, particularly SBI, may completely become cash dry any time, the SBI urged the Chief Secretary to intervene and see what may be done to ease the situation.
The RBI, Guwahati is also out of cash as the central office had not sent any remittances, said SBI and added that as the UBI, Moreh is having surplus cash, the RBI is contemplating a diversion from Moreh to Imphal.
An Air Force helicopter has been arranged to divert the cash but the chopper will be available only after April 21, said SBI.
As such the money from Moreh can be expected only after 11/12 days and moreover the amount is expected to last a maximum of only 3/4 days, added SBI.
All the banks in Imphal are dependent on the SBI branch of MG Avenue for their cash requirements and many of the ATMs in and around Imphal are already out of cash, said SBI adding that if the situation does not ease immediately the banks will be unable to continue cash transactions for the public.