Fixed Deposits of United AP froze!

Bankers who are in a fix between two quite opposite directives of the Telugu States finally decided to oblige to Telangana government’s stand. All the public sector banks have decided to freeze the Fixed Deposit Accounts of the United State and made it clear that no money will be released unless a joint circular is issued by the governments of both the states.

This decision was taken in a meeting convened by governor of Telugu States, ESL Narasimhan with the bankers and representatives of both the states. This decision was taken regarding the current and savings accounts and fixed deposits in various public sector banks that pertain to the entities that come under schedules Nine and Ten of the AP Reorganization Act.

It may be reminded to our readers that this issue flared up after a senior official of Labour department transferred Rs 400 crore from the fixed deposit account of the labour department by AP from a city branch of Andhra Bank to a branch of the same bank in Vijayawada.