Bengaluru Banks Face Cash Shortage Amid Rising Withdrawals Ahead of Elections

Banks in Bengaluru are experiencing an unusual cash shortage, with currency chests meeting only part of branch demands amid rising withdrawals from current and overdraft accounts. This surge is driven by businesses and contractors in cash-dependent sectors like construction and civic projects. The typical recycling of large cash withdrawals into the banking system has slowed, possibly due to upcoming elections prompting early cash mobilization. Banks prioritize ATM replenishment and have sought assistance from the Reserve Bank of India to manage the situation.