Hyderabad: With at least 10 cooperative banks presumed to have put their funds in the beleaguered Charminar Urban Bank, banking circles anticipate a cascading effect on the urban banks in Andhra Pradesh.

Banking sources say Bhimavaram Cooperative Bank has deposited about Rs 20 crore in the bank, while Ongole Bank has deposited about Rs 1 crore. There are about five to seven such small cooperative banks in Hyderabad and Secunderabad that have deposited over Rs 1 crore each in the bank.

None of these banks can withdraw their deposits due to the Reserve Bank of Indias directive under the Banking Regulation Act, disallowing the depositors to withdraw more than Rs 1,000 till a further order.

The banks depositors have stormed the bank branches for the third day, hoping that they can receive their deposit amount. We want to know whether we can get back our deposit money or not, says a retired government employee, who had deposited his gratuity and other pension benefits to the tune of Rs 2.5 lakh in the bank.