 "ATMs, Banks, demonetisation, cash-crunch, cash-deprived ATMs, Tamil Nadu, Andhra Pradesh, RBI, reserve Bank of India, high denomination, low denomination, Corporation bank,Confederation of ATM Industry, Telangana, Public sector banks, PSBs")
Over the course of the past few weeks, reports of cash shortages from a number of states across the country have dominated the headlines.
While various explanations ranging from high demand during festive season to operational and logistical issues have been put forth, it is difficult to arrive at a conclusive explanation for this rather unusual phenomenon.
As seen in Chart 1, currency in circulation stood at Rs 18.425 trillion on April 6, 2018, higher than the pre-demonetisation level. But as a percentage of GDP it remains lower (Chart 2), prompting some to suggest that circulation should be ramped up.
