Cash crunch woes: Deposits reduce, ATMs cut-to-size, money movement totters

Many PSBs are in the process of rationalisation of ATMs

Shreeya, a housewife living in Kottayam, got an email from Corporation Bank earlier this week that all automated teller machines (ATMs) were down and debit card transactions were getting declined due to server issues. “Customers can come to the branch with cheque and withdraw cash for the time being,” it said. Soon after, it emerged that this was not an isolated case and that cities and towns cutting across  states faced cash problem. 

While the jury is out on the reasons behind the cash crisis, three developments could help us understand the situation, analysts pointed out. 

First, the growth in