Cash shortages in several rural bank branches across Telangana have led to limits on withdrawals, causing difficulties for farmers during the sowing season. Many farmers depend on cash for labour and farm-related expenses and are unable to fully use digital payment systems.
Published Date – 9 June 2026, 03:06 PM
Sangareddy: Due to a lack of cash availability in banks, several banks, particularly Telangana Grameena Bank (TGB) and branches of other banks that have a majority of farmers’ accounts in rural parts of Telangana, have put a cap on cash withdrawals in most branches.
While some banks have capped cash withdrawals at Rs 10,000 per day, some others are allowing customers to withdraw Rs 20,000 to Rs 25,000 in cash. However, there are no fresh restrictions on UPI payments or payments through net banking.
However, not many farmers in rural parts of the State own smartphones. A good number of them cannot make payments through UPI and net banking even though they have smartphones.
Illiterate farmers are struggling more than anyone else due to the lack of cash availability. The government has procured paddy so far, for which it has deposited money into the accounts of farmers, though a significant portion of the payments is still pending. Apart from paddy, farmers have also received payments into their bank accounts after selling jowar, maize, sunflower, cotton and other crops. As the southwest monsoon has already arrived in Telangana, farmers are busy tilling their lands and purchasing seeds, fertilisers and pesticides.
Speaking to Telangana Today, a farmer from Chegunta, B Shankar, said that they need cash in hand to make payments to labourers and for hiring tractors and bullocks. Even moneylenders who lent money to them before the beginning of the previous season are insisting on repayments in cash and are declining to accept online payments.
A bank employee in a branch in Siddipet district told Telangana Today, on condition of anonymity, that they were receiving just Rs 10 lakh in cash against a demand of Rs one crore per day, which reflects the prevailing situation. The cash flow has reportedly dried up due to a lack of deposits in banks and excessive withdrawals during the summer.
