Banking and financial activities have come to a standstill in the Telangana region due to the two-day bandh call for Tuesday and Wednesday by various political parties demanding the formation of a separate state of Telangana.
According to the All-India Bank Officers Association, banking transactions worth Rs 20,000 crore will be affected during the two days, as most of the 5,000-odd branches of all banks in the region may remain closed.
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V Anil Kumar, the General Secretary of AIBOA's Andhra Pradesh unit, said the total transactions of all banks put together in the Telangana region are worth about Rs 10,000 crore per day.
"Most of the branches will be closed in the region fearing attacks. We are more worried about bank properties. Some of the branches of Andhra Bank in Telangana were attacked during bandhs in the past. We do not want that," Anil Kumar said.
Though clearing houses will not be affected on Tuesday, it stands to be affected on Wednesday, as there'll be no cheque deposits on Tuesday.
It will take three days for bank employees to clear the backlog, he added.
According to an official spokesperson of the All-India Insurance Employees Association, the bandh may have an affect on insurance premium collections in the region.
Meanwhile, all major markets, including the oils, oilseeds, bullion, vegetable and commodity markets, remained closed on Tuesday in view of the 48-hour bandh.