Bank Of Maharashtra's Currency Vault Impacted In Nagpur Flood; Notes Worth Rs 400 Cr Damaged

The floods in Nagpur on September 23 severely affected homes and trapped residents in the Nag river's hinterland and also has inundated the zonal office of Bank of Maharashtra (BoM) in Sitabuldi, causing significant damage to the currency vault. Due to the floods several hundred crores of rupees in cash were soaked, damaged, and rendered unusable, reported Times Of India.

According to TOI's latest report in which they quoted a source, the bank lost approximately Rs 400 crore in paper currency that was deemed worthless.

Background of the incident

The bank was inaugurated by then-Chief Minister Vasantrao Naik in 1967. Situated just 50 meters from the Nag river, it took over 24 hours to completely remove the water from the bank premises.

Following the flooding incident on September 23, it was reported to the RBI, which promptly dispatched an inspection team to collect the damaged notes and replenish the currency vault, according to official sources. The RBI officials carefully count and scan the notes, removing those that cannot be reissued. Subsequently, a fresh remittance is made to the bank as per standard procedure. However, if there is a shortfall in the balance, the bank may be required to make up the difference.