ATMs still face shortage of cash.

shortage of cash

Almost two thirds of ATMs across India still faced a shortage of cash until Friday. This shortage happened as the banks decided to distribute cash to customers through branches until Friday, instead of enabling ATM’s to have cash. ATM’s are an easier way of transactions as they could be accessed by debit card holders.

According to Sanjeev Patel, President of Confederation of ATM Industry (CATMI) said,”We’re having an irregular inflow of cash. But at best, in any given week, the number of ATMs active in the country has not crossed 30% or 66,000 ATMs.” According to the data released by the CATMI, only 20% of the 2.2 lakh ATMs in country are regularly loaded with cash during the 50 days of Demonetisation.

no-cash

Before Demonetisation, the ATMs used to be loaded with Rs. 8 lakhs of cash daily. This changed after Demonetisation as the banks are loading only Rs.3 lakhs in each ATM. During this time those with high net worth are able to able to withdraw as much as Rs .24000 a week while those in the ATMs are suffering from a shortage of cash. The amount dispensed in banks to one individual is equal to the amount drawn by ten individuals from the ATMs.

When the service of banks and ATMs is compared, the time that is taken to serve one individual in the banks is three times more than what an ATM can provide. According to CATMI, only SBI has been refilling the ATMs time to time. But most of the private banks chose to dispense cash through branches.

Because of this situation, the bank staff are overworked and face pressure catering to the long queues waiting to withdraw cash. Most of the ATMs are idle as they are out of cash most of the time. ATM operators are still in a fix as they are unsure if the RBI will relax ATM limits from Monday.

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