CASH CRUNCH AT ATMs - INDIA

in india •  last year 

The present condition of the ATMs reminds me the early days of demonetization when we used to make a long queue to withdrawal the money and that is also limited to some amount. Right now the country is facing the problem of cash at ATMs. The worst affected states in the country are Andhra Pradesh, Telengana, Karnataka, Bihar and Madhya Pradesh, encouraging the government and Reserve Bank of India to act in damage control. The reason given by government is "unusual shoot in currency demand" in last three months but there is no official clarification on this shoot of demand.

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The shortage first appeared in Andhra and Telangana that is supposed to be home to the major biggest contractors of country, slowly it is spread to other part of country. There is an official comments from Madhya Pradesh Government that 20% of ATMs are running dry. Bihar also confirm that there is a shortage of currency since last six days and Gujarat's deputy CM also confirmed the same situation. Whereby RBI said that there is a shortage of supply of currency notes and assured that it will be resolved in next couple of days.

The ATM transactions are increased after demonetization, the supply of currency had increased. The government said that after demonetization the supply to the ATMs are increased by an average of Rs. 10000 Cr. compare to previous Rs. 6000-7000 Cr daily.

There is a speculation that the Rs. 2000 notes are not coming to the banking system and going into the black economy as they are easy to transport and occupy less space to stock. It is also speculated that the Rs. 2000 notes are being hoarded by political parties for the up coming Karnataka election next month.

Whatever is the reason behind this mess, the only sufferer is common man. Those who think that the money in bank is safe and they can withdraw it whenever they need it, at this point of time it is proving wrong. They need to withdraw adequate amount at a time so that they do not have to stand in the queues like in late 2016 during demonetization.

Image Source : Google
https://www.google.co.in/search?q=cashless+aTM&rlz=1C1SQJL_enIN771IN771&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjz67mX1sPaAhUGso8KHfjsCQsQ_AUICigB&biw=1366&bih=662

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