Bank customers and businessmen have informed Than Lwin Times that banks in Mon State are now restricting cash withdrawals to specified amounts following a surge in withdrawals.
Following the junta's targeted punishments against seven prominent banks in Myanmar, there has been a significant increase in bank withdrawals. Furthermore, as public trust in banks has dwindled, the number of depositors has also declined.
Now, due to decreasing cash reserves in banks, increasing challenges in cash transportation due to security concerns, and reduced capacity to distribute cash from headquarters to branch locations, cash withdrawals are becoming increasingly difficult.
Depending on the bank, individuals are permitted to withdraw between 500000 MMK and 1000000 MMK, with some banks enforcing different withdrawal limits.
A businessman told Than Lwin Times that running businesses has become increasingly challenging due to limited cash withdrawal capabilities from banks.
"Some payments need to be made in cash, but now with banks limiting withdrawals strictly, we're encountering significant hardships. Some individuals prefer cash over bank transfers, and the current crisis is causing us a lot of trouble”, he noted.
The seven banks targeted by the regime include United Amara Bank, AYA Bank, Yoma Bank, Construction, Housing and Infrastructure Development Bank, Myanmar Citizens Bank, SME Development Bank, and Myanmar Metro Bank. They are accused of exceeding property loan limits.
Following the junta's targeted actions against banks, domestic withdrawals have surged, resulting in banks struggling to maintain normal operations.
An employee of a private bank explained that due to limited cash reserves, customers are only permitted to withdraw limited amounts.
“These days, banks have very little cash on hand. That's why withdrawals are limited to between 500000 and 1000000 MMK. If there's more money in the bank vaults, we could allow larger withdrawals. But with our cash reserves so low, we have no choice but to restrict withdrawals”, he said.
Economists warn that the public's increased withdrawals, prompted by the junta's penalties against banks, could trigger a chain reaction that may lead to the collapse of banks.
