ATMs still running dry post demonetisation

The government decision to demonetise Rs 500 and Rs 1000 notes last November was meant to clamp down on black money and terror financing.

Nearly after five months post-demonetisation, the ATMs continue to run dry in several locations. Looks like the arid days of demonetisation are back. Customers are seen visiting multiple booths of various banks and returning empty-handed. The decision to scrap high value note has wiped out around 86% of the money which had caused long queues outside ATMs and banks.

Though in the month of January, RBI had introduced new 500 and 2,000 rupee notes into the system, but the shortage at ATMs had not eased.

According to the Cash Logistics Association, the cash in the ATMs is still not adequate and is falling short by 30% of money. Cash logistics companies such as SIS Prosegur and CMS are hired by banks to ship cash and replenish ATMs.

According to these logistics companies, the banks do supply adequate cash for ATMs during the beginning of every month after that the supply thins.

A statement given by the State Bank of India also indicated that remonetisation exercise would be completed by mid-April.

While a senior bank executive said that cash transactions and withdrawal declined considerably after demonetisation. But the use of cash is back in circulation, and increasing. This is what causing a shortage because the remonetisation exercise is yet to be completed.

The government decision to demonetise Rs 500 and Rs 1000 notes last November was meant to clamp down on black money and terror financing.

OneIndia News