Several ATMs and banks across Telangana and Andhra Pradesh are running low on cash as depositors fear that the proposed Financial Resolution and Deposit Insurance Bill will cause losses in case a bank goes bankrupt, The Indian Express reported on Thursday.

The bill has a clause that proposes to use depositors’ money to bail out banks. However, Finance Minister Arun Jaitley had clarified that the FRDI Bill will protect the interests of depositors. “About Rs 2.11 lakh crore is being pumped in to strengthen Public Sector Banks. So no such question [failure of banks] arises,” he had said. Jaitley had added that if banks do fail, the government will “fully protect” the deposits made by customers.

“People are withdrawing money even if they do not need it and keeping it with them,” State Bank of India Regional Manager (Visakhapatnam) H Purnima told The Indian Express. “Cash is not coming back into the banking system. We are unable to refill ATMs because people are not depositing in banks.” Purnima added that all banks have been facing this since November.

General manager at SBI’s Hyderabad head office M Harshavardhan said an analysis of the bank transactions indicated people were withdrawing their entire salary immediately after it is credited. “Earlier, people would withdraw Rs 10,000 or Rs 15,000 in the first week, and withdraw more later during the month,” said Harshavardhan. “Since November, we are seeing people withdrawing the entire salary, or more than they require. It is partially due to the FRDI rumours and partially because people think cash may not be available later, so why take the risk.”

Earlier, there were reports that banks in Telangana have asked their counterparts in Maharashtra and Kerala to dispatch cash to help them address the crunch while Andhra Pradesh banks have sought help from lenders in Odisha and Tamil Nadu.

Both Telangana and Andhra Pradesh finance ministers said the crisis was triggered by the Reserve Bank of India which was not sending enough cash to banks. Some bank officials also believe that the RBI has deliberately reduced the cash supply to compel people to make digital payments.