Cash shortage forces banks to close

Business >> National

KANTIPUR REPORT

ILAM, SEP 23 - Many people from the hilly districts of Mechi visiting banks to get money have had to return home empty-handed ahead of the Dashain festival.

The Ilam branch of Nepal Bank Limited closed its doors on Tuesday after it ran out of cash. Similarly, the bank has decided to close its branch at Panchthar due to the same problem.

According to Anil Sapkota, branch manager of Nepal Bank Limited, Ilam, they need Rs. 100 million for salary and allowance distribution of teachers, employees and other account holders; but they were compelled to close as they did not have enough money.

"We have repeatedly asked the central office to send us money," he said. "Even the branch employees have not been able to draw their salaries." He added that even though they had informed the central office, there was no chance of receiving money immediately.

"I have come here many times, but was not able to withdraw any money," said Durga Prasad Chapagain of Saraswati Secondary School, Soyang. People having personal accounts have not been able to get money either.

Likewise, the Phikkal branch of Rastriya Banijya Bank on Tuesday could not operate due to lack of money. Even other commercial banks here were not able to release the money as demanded.

"We continued providing service with our reserve of Rs. 7-8 million today," said Khadga Bahadur Thapa, assistant manager of Nepal Bank Limited, Panchthar. He added that the problem was serious and that it could be addressed only if the central office provided some Rs. 70 million.

The banking transaction of Nepal Bank Limited in Bhadrapur branch, is uncertain form Wednesday. " We will not be able to give full payment from Wednesday onward because of the increasing demand," said Sunil Amatya of the branch.

Meanwhile, Rastriya Banijya Bank's branch in Khotang too has failed to give back money to its account holders due to week-long shortage of money. Nepal Rastra Bank had sent money to the branch on Sunday via helicopter but the branch ran out of money on the same day due to huge withdrawal.

Teachers having account in the branch said that they had been staying in the district headquarters for a week but failed to receive money. The bank claimed that they had provided Rs. 100,000 for salaryholders and Rs. 20,000 for general account holders.