ATMs in India are suffering from shortage of cash and this could leave an impact on rural and semiurban areas. This information was shared by the Confederation of ATM Industry (CATMi) to the Indian Banks’ Association (IBA).
In its letter to the IBA, CATMi said its members were facing “sustained difficulty drawing cash for ATM loading from bank branches and currency chests across several states”.
In March and April, the intended cash (the cash needed to load into ATMs) was ₹94,000 crore, but the available amount was ₹61,000 crore and ₹54,000 crore, respectively. This translates into a fulfilment percentage of 64 per cent and 57 per cent, respectively.
ATM operators received only 64% of their cash requirement in March and 57% in April.
RBI data shows ATM transactions fell to 446.5 million in May from 498.4 million a year earlier, a decline of more than 10%. The value of withdrawals also dropped from around ₹2.64 trillion to ₹2.5 trillion.
The Department of Financial Services (DFS) has asked banks to submit details about the difficulties they face obtaining cash to load into automated teller machines or ATMs.
In an email to the chief executive officers of banks on Saturday, the DFS said, “Banks are requested to examine the matter and provide comments, including the reasons, if any, for the reported issues in cash replenishment and the steps being taken to address the same.”
