AHMEDABAD: With folks keeping more money in hand because of pandemic-induced doubts and expected disasters, bank deposits from rural Gujarat dropped by 15 percent in 2020-21.
The decrease has been further afield with lack of employment caused by the return of researchers to their own villages.
The aggregate bank deposits of scheduled commercial banks (SCBs) in metropolitan regions throughout the state fell to Rs 91,212 crore in financial 2020-21 from Rs 1.06 lakh crore at 2019-20, the Reserve Bank of India (RBI) statistics reveals.
The first quarter of financial 2021, once the national lockdown was enforced to curtail Covid-19 distribute saw aggregate bank deposits fall by 21 percent to Rs 84,653 crore within the previous quarter.
This signaled money prices worth $22,346 crore within 1 quarter .
“Uncertainty because of the lockdown, expected disasters and Covid caused fear withdrawal from rural locations, causing aggregate residue to decrease.
Bank branches in rural Gujarat were in a space and accessibility because of lockdown constraints was an problem.
This led individuals to draw enormous amounts of money,” explained a source in State Level Bankers’ Committee (SLBC) – Gujarat.
The decrease in bank deposits was first reported over 20 districts such as Ahmedabad, Amreli, Banaskantha, Bharuch, Rajkot, Surat, Kheda, Mehsana, Morbi and Patan, amongst others.
“But, the residue picked up in the next quarter as agriculture industry revived.
But expansion rate remained slow.
From panic people held to money reserves.
Another cause of decrease in deposits would be also the reclassification of bank branches in rural into semi-urban places,” stated MM Bansal, convener, SLBC – Gujarat.
In accordance with banking sector resources, migrant exodus and anxiety of some other shutdown resulted in withdrawal of hefty amounts and reduced speed of residue.
“Lockdown turned into a significant doubt factor for rural people and they want money to buy fertilizers and seeds, being hevily determined by agriculture.
Many confronted difficulties in obtaining cash and therefore, withdrew more cash.
On the flip side, even as agriculture output has been great producing them great yields, small part of those funds were redirected to lender deposits,” said a source in a public-sector financial institution.
Migrant exodus was also a basis behind decrease in residue and reduced revival.
“Most migrants lost their jobs and returned to their home country with no source of revenue.
This eroded economies and improved consumption and consequently money demand in rural families moved up.
Additionally, the propensity of never parting with money in uncertain cases prevailed inducing deposits to decrease,” said Jayshree Vyas, managing director, SEWA bank.
The aggregate bank deposits of scheduled commercial banks from Gujarat climbed 11 percent from Rs 7.63 lakh crore from 2019-20 to Rs 8.47 lakh crore at 2020-21, indicates RBI data.
Except rural places, deposits moved up in semi-urban, metropolitan and urban locations.