Demonetisation woe continues: One-fourth of ATMs across country running dry again

A private sector bank executive said the cash shortage was more pronounced in small towns and rural areas.

Demonetisation woe continues: One-fourth of ATMs across country running dry again

Even three months after the demonetisation, the cash crunch still haunts people as An estimated one-fourth of the ATMs across the country are running dry again with people withdrawing large amounts for sundry payments and purchases at the start of the month.

Lakhs of workers in unorganised sectors are still paid in cash, usually within the first week of the month. The fresh cash shortage could fuel the debate over the efficacy of the move to withdraw high-value banknotes and leave the government open to a renewed attack by the opposition, which has been very critical of the demonetisation exercise.


The fresh cash shortage could fuel the debate over the efficacy of the move to withdraw high-value banknotes and leave the government open to a renewed attack by the opposition, which has been very critical of the demonetisation exercise, Hindustan Times reported.

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,” 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, told Hindustan Times.

Though banking sources admitted that about 25-30% of the ATMs were short on cash, they said the overall situation was under control and far better than what it was in December and January, shortly after an estimated Rs 15.44 lakh crore was sucked out of the system.

A private sector bank executive said the cash shortage was more pronounced in small towns and rural areas.

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