Banks plan to shut down most branches during lockdown: Report

  • Major lenders are considering shutting down most branches across the country to prevent coronavirus infection
  • Banks have been exempted from a 21-day lockdown that began this week

Neha Dasgupta, Nupur Anand (with inputs from Reuters)
Updated26 Mar 2020
In the countryside, where 70% of people live and often rely only on cash, banks will likely operate on alternate days.
In the countryside, where 70% of people live and often rely only on cash, banks will likely operate on alternate days.

NEW DELHI/MUMBAI: India's central bank and major lenders are considering shutting down most branches across the country to prevent tens of thousands of employees from getting infected with the coronavirus, four sources familiar with the plan told Reuters.

India is still very much a cash society and banks have been exempted from a 21-day lockdown that began this week as they are considered an essential service.

Under the plan, in major cities there would likely be only one bank open every five kilometres, the sources said, declining to be identified as it has not yet been publicly disclosed.

In the countryside, where 70% of people live and often rely only on cash, banks will likely operate on alternate days and redeploy staff to only allow disbursal of welfare cash to the poor, one of the sources said.

"The general guideline is that branch operation should largely be for villages just to take care of those people who are not familiar with digital transactions," a senior banker with a state-run bank told Reuters.

"Informally, banks are talking to each other to cope up with a situation where there will be some rush for cash withdrawal because it is expected the government will provide cash for the poor directly into their accounts."

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeIndustryBankingBanks plan to shut down most branches during lockdown: Report

Most Active Stocks

Ashok Leyland

226.75
10:28 AM | 27 MAY 2024
16.2 (7.69%)

Bharat Electronics

294.35
10:20 AM | 27 MAY 2024
-2.75 (-0.93%)

Zee Entertainment Enterprises

148.95
10:27 AM | 27 MAY 2024
-2.7 (-1.78%)

Tata Steel

175.50
10:29 AM | 27 MAY 2024
0.7 (0.4%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Vishnu Prakash R Punglia

174.50
10:14 AM | 27 MAY 2024
14.1 (8.79%)

Clara Industries

240.00
09:59 AM | 27 MAY 2024
19.35 (8.77%)

Glenmark Pharmaceuticals

1,120.30
10:18 AM | 27 MAY 2024
84.9 (8.2%)

JBM Auto

2,124.30
10:29 AM | 27 MAY 2024
158.9 (8.08%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,045.00216.00
    Chennai
    73,613.00288.00
    Delhi
    73,180.00-72.00
    Kolkata
    73,325.00-144.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    99.84/L0.00
    Chennai
    100.85/L-0.03
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsPremiumFor youGet App