Banks and Lockdown: Will Banks Remain Open?

Banks are an essential part of any economy, and their operational continuity is crucial, especially during a lockdown. Unlike the full closure of businesses during a lockdown, banks typically operate with minimum staff while offering essential services. This ensures that the financial system remains functional and supports the overall economic stability.

Banks Will Not Fully Close During a Lockdown

Typically, banks do not fully close during a lockdown but operate with a reduced number of staff. These staff members handle critical tasks and approvals, ensuring that the banking system remains operational. If necessary, banks will provide essential services, but the primary focus is on maintaining basic financial transactions and ensuring the safety of their employees and customers.

Bank Operations During the Coronavirus

Contrary to widespread concerns, banks remain open for the public during the coronavirus pandemic. The Indian government has specifically mandated that all private or government banks continue to provide their services to the public. This is crucial for maintaining economic stability and ensuring that individuals and businesses can continue to access critical financial services.

Banks Considered as Essential Services

Banks are classified as essential services, and have been designated to continue operations. However, the Indian Banking Association (IBA) has issued a notice urging the public to use alternate channels such as ATMs and online banking for non-essential services. Customers are advised to visit physical branches only for urgent transactions, thereby minimizing the risk of infection by limiting in-person interactions.

Banking During Lockdown: Essential Services and Rotation

Banks operate with a reduced staff, with employees working on rotation to minimize the number of people in the branches at any given time. Most services are available through mobile, internet, and ATM banking, reducing the need for in-person visits. By adhering to these measures, banks can ensure both the safety of their staff and the continuity of service.

Uncertainty and Potential Full Closure

While banks generally operate during a lockdown, the decision to extend this partial operation can vary based on the evolving situation. If the pandemic worsens and the health risks become more critical, there is a possibility that banks might have to close entirely. However, this is a last resort to ensure public safety.

Concluding Thoughts

Ultimately, the priority of banks during a lockdown is to provide essential services while ensuring the safety and health of their staff. By using technology and rotating staff, banks can maintain critical financial operations without putting their employees or the public at significant risk.