Banks open: As Coronavirus Spreads, Banks Face a Tough Call on Branch Closures. As bank employees want to keep safe distances by working from home, while customers expect instant access to their money and services.
Several banks have asked customers to avoid visiting branches and use digital banking services
To carry out basic essential transactions, the Indian Banks’ Association (IBA) has asked banks to open only selective branches in areas that have been placed under lockdown across the country in view of the coronavirus pandemic. In a late-night communique to the heads of banks, the IBA requested the state level SLBC convenor banks and lead district managers to proactively consult the state administration to chalk out a feasible Business Continuity Plan (BCP).
“Keeping this in view, after due deliberation, it is suggested that member banks may selectively keep their branches open at such locations after due consultation with the local state government/authorities to carry out the basic essential transactions- as per the IBA statement.
In a late-night communique to the heads of banks, the IBA requested the state level SLBC convenor banks and lead district managers to proactively consult the state administration to chalk out a feasible Business Continuity Plan (BCP).
The association (Indian Bank Association) asked the CEO of banks to empower their regional or zonal or circle heads to take appropriate decision in the matter.
“State Level Bankers’ Committee (SLBC) convenors should also take concurrence of the regional director of RBI for implementation of BCP prepared by them- the association said.
Also, The MD & CEOs of the SLBC convenor banks may take the lead in providing guidance to the SLBC convenor and member banks in the state for effective implementation of the contingency plan.
Earlier in the day, the association had also urged customers to use online and mobile banking channels for making their transactions and avoid visiting bank branches as it could pose a risk to banks’ front desk staff.
Due to the Coronavirus pandemic in India, only a few employees are working in banks to avoid overcrowding. The governor of the Reserve Bank of India, Shaktikanta Das, said that there are some banks that will be operating after March 23, 2020, and there will be more digital payments initiated to avoid the spread of Coronavirus in any manner. He also added that most of the services the bank offers are available online and for non-essential services, the customer does not need to go to the bank if he/she can avail of the service online.