Panic stricken residents of a predominantly Muslim village withdrew about Rs six crore from their accounts in a public sector bank last week after it put out a public notification in a Tamil daily, mentioning National Population Register among the KYC documents needed.
The Central Bank of India had put out the notification on January 11.
Police and bank officials said the people panicked as social media created a scare that the notification had been issued to 'punish' them for taking part in an anti-CAA-NRC protest recently.
They said Rs six crore had so far been withdrawn, mostly by women.
Many of the accounts were held by Non-Resident Indians, they said.
The bank has now clarified through public announcements that the notification was a routine one and the depositors' money was safe.
Shakeel, a local Congressman and social activist said the notification was published about two weeks after an anti-CAA and NRC rally was held, in which hundreds of people took part.
Bank officials said the withdrawals have come down since Friday, as people have now understood the facts.
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