Police said the money was snatched from the person, a rice mill worker, by two men on a motorcycle when was walking to his office in a lane opposite the private bank on busy G T Road in the heart of the town after withdrawing it.
The snatchers, who had helmets on their heads and had covered their faces, fled away towards the railway station on the motorcycle immediately afterwards, the police said.
A search has been launched to trace the snatched money and the culprits, the police said.
Meanwhile, businessmen of the town held a meeting with the sub-divisional police officer last evening demanding more security to stop incidents of snatchings and attacks on them.
In yesterday's incident an unidentified man had fled with Rs 1.76 lakh in cash from inside a government bank after slitting open the bag of a customer who was in the queue to deposit the money.
