One-fourth ATMs run dry, banks say situation far better than before

Approximately one-fourth of the ATMs across the country are running dry again as people have been withdrawing large amounts for payments and purchases at the beginning of the month, bank officials said on Tuesday, as reported by Hindustan Times.

The fresh note crisis has taken place due to heavy cash withdrawal made in the beginning of the new month. People have withdrawn their salaries leading to shortage of currency notes.

Officials of bank and cash logistics companies, however, said the shortage will be over after February 10.

“Typically, the salary cycle is on till about the 8th of any month... ATM functioning is near-normal and there has been no major problem, banks have ensured there is enough cash for ATMs,” said Rituraj Sinha, president of the Cash Logistics Associations, an umbrella body of firms which manage the country’s 2.2 lakh-odd cash-dispensing machines.

Banking sources have admitted that around 25-30% of the ATMs were short on cash. But the situation is far better than what it was in December. 

RBI has till now pumped in over Rs 10 lakh crore in the system. Approximately Rs 15.4 lakh crore was sucked out of the system in wake of demonetisation. 

“There is significant cash constraint even today and people especially those who are working in the unorganised sector are once again going through a lot of pain. Many ATMs still don’t have cash,” said CH Venkatachalam, general secretary of the All India Bank Employees’ Association.

The union had planned a strike on February 7 but rescheduled it for February 28 in view of the factory payday.