Confusion over ‘NPR for KYC’ triggers ‘huge cash withdrawal’

Thoothukudi [Tamil Nadu]: Panic gripped customers of Central Bank of India, Kayalpattinam after the bank’s notification mentioned ‘NPR letter’ as a document for Know Your Customer (KYC) update.

Later, the bank had issued a clarification that NPR letter is not mandatory rather it is an additional document. Despite issuing a clarification, confusion prevailed which resulted in ‘cash withdrawal spree’.

Notification

It all started after the bank issued a notification listing documents for the KYC update. The documents mentioned in the notification was PAN card, passport, voter identity card, driving license, National Rural Employment Guarantee Act card, Aadhaar and NPR letter. It was also mentioned that the accounts of the persons who failed to submit documents would be frozen.

However, the notification did not mention whether the customers have to submit all the documents or any one of them.

Confession led to ‘mass withdrawal’

Confession over the notification resulted in the huge withdrawal of cash at Central Bank of India, Kayalpattinam. The bank witnessed the withdrawal of Rs. 1 crore on Saturday, Rs. 1.85 crore on Monday and Rs. 1.5 crore on Tuesday.

Talking to media person, a man by name Mohideen said that he withdrew entire savings from the bank due to the confusion.

Protest against NRC, NPR

A few of the persons said that they are withdrawing their savings as a mark of protest against NRC and NPR.

One of the traders who was standing in a queue to withdraw his savings said that ‘mass withdrawal’ is another form of protest.

Another person said that huge cash withdrawals are also taking place in other banks of Kayalpattinam.

Puzzled over the huge withdrawals, bank officials met the local Muslim leaders and explained the details of the notification.