BFIs open, but in a few areas only, for short periods and with cash limits

KATHMANDU, April 29: It has been three days since the earthquake hit Nepal but bank and financial institutions (BFIs) are yet to provide their minimum banking service—cash withdrawal—to the public from their branch offices or ATM outlets.

While 15 out of 20 the branch offices that Republica visited were found to be closed on Tuesday, most of the ATMs were also out of operation.

Even those BFIs that were provided banking services from their head offices and their main or other branch offices closed at 2pm on Tuesday.

The inability to resume adequate banking services has left their cash-strapped clients in a lurch.

"I was yet to get an ATM card from the main branch office of Bank of Kathmandu Ltd (BoK) in New Road. And it has remained closed. I am running out of cash now. So I came here (BoK head office in Kamaladi) with a check. However, this one has already closed, "Suman Bastola, whom Republica met at the BoK head office gates, lamented.

Nepal Rastra Bank (NRB) officials, however, says that 75 percent of the branch offices of BFIs inside the Kathmandu Valley are already in operation.

"We have deputed 39 teams inside the Valley to assess the post-disaster situation of BFIs. Some of the BFIs were found to have been hit by the earthquake. Some of their offices were destroyed by the earthquake while others reported having cracks in their buildings," Min Bahadur Shrestha, spokesperson at NRB, told Republica.

"75 percent of the branch offices and ATMs that our teams went to for survey were found to be operating. Except those affected by the earthquake, almost all the branch offices are now under operation," Shrestha added.

The banks have set a threshold of Rs 50,000 a day as the maximum withdrawal limit per account.

Nepal Bankers Association (NBA) Vice President Anil Shah told Republica that the limit was imposed to avoid any possible liquidity crunch.

"We have enough cash. However, we want to avoid a situation where a few people just come and withdrawal millions of rupees. The limit will allow more people to have enough for essentials at this critical time," Shah said, adding that the limit would be lifted gradually after situation returned to normal.

Shah too said that most branch offices and ATMs, except for those hit badly by the earthquake, had opened.

"There might be internet and server connection problems at some of the ATMs and this might have caused them to encounter problems in functioning properly. However, they will also come into operation from tomorrow (Wedesday) once the connection are fixed," Shah said.

Meanwhile, NRB officials say that there has not been much withdrawal pressure on the BFIs in last three days.

"So far, the number of transactions is very low at the BFIs, except for government-owned Rastriya Banijya Bank Ltd," NRB spokesperson Shrestha said.

He also said that inter-bank check clearances will begin from Wednesday. "From Thursday onward, check clearance will be completed within one or two working days," he added.

Bankers have also said that they will extend opening hours gradually.

Source: myRepublica