Cash is still king: On ATMs running dry
6 years, 11 months ago

Cash is still king: On ATMs running dry

The Hindu  

Nearly 18 months after the government’s decision to scrap currency notes of ₹500 and ₹1,000, which accounted for over 86% of the currency in circulation at the time, large parts of India are in the throes of a severe cash crunch again. Theories abound on how upcoming elections, starting with Karnataka and possibly ending with the Lok Sabha polls in 2019, have prompted a large-scale cash management exercise among political parties. There could be some truth in these explanations, but the genesis of the current cash crisis is firmly rooted in the lack of system-wide thinking that went into the Centre’s big-bang note ban gambit. The government may have chosen to go for ₹2,000 notes post-demonetisation to remonetise the economy faster, but with lower denomination notes taking longer to flow freely, circulation wasn’t efficient and the big note has become a preferred mode for hoarding capital.

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History of this topic

Why your ATMs may be running out of cash
2 weeks, 4 days ago

Why your ATMs may be running out of cash

Firstpost  

The collapse of service provider AGS Transact Technologies has caused thousands of ATMs across India to run short of cash. The company has been grappling with financial strain, leading to credit rating downgrades from agencies Crisil and India Ratings, and the resignation of all four of its independent directors over “personal reasons.” Moneycontrol quoted India Ratings as saying, “The liquidity …

Opinion | The slow suffocation of ATMs in the country
5 years, 10 months ago

Opinion | The slow suffocation of ATMs in the country

Live Mint  

Human memory is short, but a small trigger can revive painful episodes. According to the Reserve Bank of India, the number of ATMs across the country has shrunk over the past two years despite rising transactions done on these machines. A Bloomberg report published on Thursday in Mint refers to an International Monetary Fund chart for 2017 which shows that …

Hyderabad: Rs 120 crore seizures before polls defeat purpose of demonetisation
6 years, 3 months ago

Hyderabad: Rs 120 crore seizures before polls defeat purpose of demonetisation

Deccan Chronicle  

Hyderabad: ATMs are running dry of cash while at the same time as much as Rs 120 crore has been seized ahead of the December 7 elections, and the count is only growing. Underlining this claims, Election Commission officials said more cash was seized in this election compared to previous polls. Election Commission officials said they were strictly controlling the …

Cash transactions up after demonetisation but India’s ATM network far from adequate
6 years, 5 months ago

Cash transactions up after demonetisation but India’s ATM network far from adequate

Live Mint  

Although demonetisation seemed to put a dampener on India’s cash economy, data shows that it might not have been a lasting impact. The TCPSL report said that India witnessed significant growth in the volume of cash transactions even after demonetisation. The TCPSL report states that even though India’s urban population has adapted to digital payments and transactions, the country’s vast …

Cash may not be flowing, but people have benefited: Sadananda Gowda
6 years, 9 months ago

Cash may not be flowing, but people have benefited: Sadananda Gowda

The Hindu  

Union Minister for Statistics and Programme Implementation D.V. In an interaction with presspersons here on Monday, Mr. Gowda said cash transactions through mobile-based apps or online would help in curbing corruption. When asked how much black money had been recovered through demonetisation, he said that the statistics were submitted in Parliament only recently and he would inform the public in …

Karnataka Polls: It's raining money, new driving force?
6 years, 10 months ago

Karnataka Polls: It's raining money, new driving force?

Deccan Chronicle  

Bengaluru: In a tightly contested triangular fight among the Congress, the Bharatiya Janata Party and the dominant regional party – Janata Dal in the Assembly elections, more than caste, it is moolah, which will be the driving force. “Each party has reportedly spent around Rs five crore in cash and kind per constituency for distribution to voters by their local …

After demonetization, people have been withdrawing larger amounts from ATMs
6 years, 11 months ago

After demonetization, people have been withdrawing larger amounts from ATMs

Live Mint  

Has there been too much withdrawn from automated teller machines? In fact, going by figure 1, it is likely to take a long time for the number of withdrawals from ATMs to hit pre-demonetization levels. In fact, as figure 2 shows, as soon as cash was widely available following demonetization, the average ATM withdrawal amount became higher than in the …

What the cash crunch foretells
6 years, 11 months ago

What the cash crunch foretells

Deccan Chronicle  

Conspiracy theorists are hard at work to identify the drivers behind the ongoing cash crunch, that has left the automated teller machines in cities and towns across large parts of the country dry. Could this be a surgical strike by the banks and ATM service providers who have got unsettled by the criminal investigations into fraud or are upset with …

Dry ATMs: Why the banks are getting the runs
6 years, 11 months ago

Dry ATMs: Why the banks are getting the runs

Deccan Chronicle  

Automated teller machines in various parts of the country are running dry; and the situation is particularly hard in Telangana and Andhra Pradesh, which border Karnataka, the land of big bucks elections. It never really went away, but property transactions and political and bureaucratic corruption that are “cash intensive” affairs somewhat slowed down. In its annual report of March 2016, …

ATMs run dry: RBI governor Urjit Patel should quit, demands bank union
6 years, 11 months ago

ATMs run dry: RBI governor Urjit Patel should quit, demands bank union

Firstpost  

The All India Bank Employees’ Association on Thursday demanded Reserve Bank of India Governor Urjit Patel quit as the central bank is grossly negligent on several issues, including the cashless ATMs across the country Chennai: The All India Bank Employees’ Association on Thursday demanded that Reserve Bank of India Governor Urjit Patel quit, as the central bank, according to the …

ATM cash withdrawals rose sharply in Oct-Mar period: SBI
6 years, 11 months ago

ATM cash withdrawals rose sharply in Oct-Mar period: SBI

Live Mint  

Mumbai: More than a year after remonetization, demand for cash has sharply gone up as seen in a spike in cash withdrawals from ATMs, resulting in cash crunch across some states, the State Bank of India said in a research report on Wednesday. The report, citing data from the Reserve Bank of India, showed that ATM cash withdrawals increased by …

'Cash availability at ATMs improving', banks rebuff claims of 'crisis'
6 years, 11 months ago

'Cash availability at ATMs improving', banks rebuff claims of 'crisis'

India TV News  

India's largest lender SBI said today that cash availability at its ATMs has increased in the past 24 hours following reports of currency shortages and ATMs running dry from different parts of the country. Several other lenders, including PNB, Canara Bank and Axis Bank claimed that cash shortage at ATMs was limited to select pockets. When asked about its ATMs, …

Govt defends scam-hit banks as cash crunch hits ATMs, says no need to panic
6 years, 11 months ago

Govt defends scam-hit banks as cash crunch hits ATMs, says no need to panic

Hindustan Times  

India’s cash machines are running dry, leaving policy makers and bankers scrambling to assuage the public and prevent perception about the nation’s fraud-hit financial system from worsening. | Read: ‘Temporary problem’ to ‘no cash crunch’: How govt responded to empty ATMs reports “Our first order of response is to make sure that adequate cash is available at ATMs and in …

ATMs go dry across nation; govt says no currency shortage; RBI cites logistical issues
6 years, 11 months ago

ATMs go dry across nation; govt says no currency shortage; RBI cites logistical issues

India TV News  

Unusual spurt in demand for currency led to many ATMs and banks running out of cash in Uttar Pradesh, Madhya Pradesh, poll-bound Karnataka and some other states even as the government and the RBI assured the public that there was no currency shortage. Amid reports of currency shortages, the government said printing of Rs 500 denomination notes would be increased …

ATMs run dry: Lessons learnt from demonetisation seem to be forgotten as cash becomes king again
6 years, 11 months ago

ATMs run dry: Lessons learnt from demonetisation seem to be forgotten as cash becomes king again

Firstpost  

People fear that cash is safer at home than in banks and this is further fueled by the string of scams and frauds that have hit banks There could be just two explanations for the shortage of cash in Indian ATMs. Some officials have suggested that ATMs in some states have become dry because of an imbalance in supply, implying …

Government attempts damage control as ATMs run dry
6 years, 11 months ago

Government attempts damage control as ATMs run dry

The Hindu  

Amidst reports of a cash crunch from different parts of the country, Union Finance Minister Arun Jaitley said the government was “tackling the issue quickly” to overcome a “temporary shortage” caused by a sudden spurt in demand. Appealing to citizens not to panic, the Finance Ministry said, “We continue to have in stock adequate currency notes of all denominations, including …

Cash crunch: Govt goes into firefighting mode as ATMs run dry across country, Opposition dubs it 'financial emergency'
6 years, 11 months ago

Cash crunch: Govt goes into firefighting mode as ATMs run dry across country, Opposition dubs it 'financial emergency'

India TV News  

The government machinery went into firefighting mode on Tuesday with reports of ATMs running dry across the country. States like Telangana, Bihar, Karnataka, Madhya Pradesh, Andhra Pradesh and others reported shortage of currency notes forcing Finance Minister Arun Jaitley to issue a statement quelling fears of post-demonetisation-like situation. In his Lok Sabha constituency Amethi, Rahul Gandhi said the "terror of …

Banks stingy with cash, says ATM industry
6 years, 11 months ago

Banks stingy with cash, says ATM industry

The Hindu  

Members of the automated teller machine industry have blamed banks for not supplying adequate cash which has resulted in the acute shortage of cash in several parts of the country this month. “Things were fine till March, in terms of ATM transactions, but last few days we are having serious problem with cash,” said V. Balasubramanian, a spokesperson for the …

ATMs run dry: RBI, finance ministry were warned of cash crunch in March, but bank didn't act on Andhra tipoff
6 years, 11 months ago

ATMs run dry: RBI, finance ministry were warned of cash crunch in March, but bank didn't act on Andhra tipoff

Firstpost  

New Delhi: Almost one-and-half months before the currency crisis exploded causing much distress to the aam aadmi, the Andhra Pradesh government had warned the Reserve Bank of India, Ministry of Finance and the State Bank of India about the lurking threat. Top sources said the Andhra Pradesh chief secretary Dinesh Kumar had written a communique on 9 March, 2018 about …

Cash crunch: RBI says there's no currency shortage; vaults and currency chests are well-stocked
6 years, 11 months ago

Cash crunch: RBI says there's no currency shortage; vaults and currency chests are well-stocked

Firstpost  

RBI said it is taking steps to move currency to areas which are witnessing unusually large cash withdrawals Reports of cash shortages at ATMs across the country are doing the rounds, with people saying that some ATMs are running dry. However, the Reserve Bank of India, on Tuesday, clarified that there is no currency shortage and added that there is …

‘Temporary problem’ to ‘no cash crunch’: How govt responded to empty ATMs reports
6 years, 11 months ago

‘Temporary problem’ to ‘no cash crunch’: How govt responded to empty ATMs reports

Hindustan Times  

The government on Tuesday sought to explain the reason for cash shortage in parts of the country, with the finance minister calling the problem “temporary” and a senior bureaucrat saying there is no shortage. We keep Rs 2.5-3 lakh crore more currency in stock for excess demand,” IANS quoted S C Garg, economic affairs secretary, as saying. Finance Minister Arun …

ATMs go dry nationwide: Why the biggest cash hoarders - political parties and RBI - owe answers for crunch
6 years, 11 months ago

ATMs go dry nationwide: Why the biggest cash hoarders - political parties and RBI - owe answers for crunch

Firstpost  

The Reserve Bank of India will do well taking a closer look at the backyards of cash hoarders, and its own, when it attempts to determine the exact reasons for a sudden, nationwide cash crunch despite printing enough currency. Second, the RBI’s withdrawal of Rs 2,000 notes from the system spawned the cash shortage. Now, taking the difference of the …

ATMs running out of cash remind me of demonetisation days: Mamata Banerjee
6 years, 11 months ago

ATMs running out of cash remind me of demonetisation days: Mamata Banerjee

India TV News  

Amid reports of ATMs running dry in several states, West Bengal Chief Minister Mamata Banerjee on Tuesday said it reminds her of the demonetisation days. "Seeing reports of ATMs running out of cash in several states. However, Union Finance Minister Arun Jaitley on Tuesday said the government has reviewed the situation and "there is more than adequate currency in circulation". …

Demonetisation impact: Will cash continue to be king or will digital innovation take over?
7 years, 4 months ago

Demonetisation impact: Will cash continue to be king or will digital innovation take over?

Firstpost  

On 8 November, 2016, taking the nation by surprise in a televised address to the nation, Prime Minister Narendra Modi, announced that bank notes would no longer be legal tender from midnight in order “to break the grip of corruption, fake currency and black money”. All banks and cash machines were ordered to remain close on Wednesday, 9 November in …

Cash crunch haunts Hyderabad for six months
7 years, 10 months ago

Cash crunch haunts Hyderabad for six months

Deccan Chronicle  

Hyderabad: There’s no change in the cash crisis in the city after six months of the demonetisation announced by Prime Minister Narendra Modi. An RBI source said there were two likely reasons for the present cash crisis. “The big branches that used to see deposits of Rs 50 lakh and above per day before the demonetisation are getting only Rs …

ATMs run dry: With cash withdrawals at pre-demonetisation levels, is Modi's digitisation drive facing hurdle?
7 years, 11 months ago

ATMs run dry: With cash withdrawals at pre-demonetisation levels, is Modi's digitisation drive facing hurdle?

Firstpost  

Supply of cash from banks to ATMs has currently dropped to Rs 6 lakh from Rs 12 lakh per booth on an average before the note ban days. Data from National Payments Corporation of India shows that bank ATM withdrawals exceeded Rs 1 lakh crore last month, almost the same level seen in October 2016 but double the amount in …

Finance ministry calls banks to discuss new facility to drain cash: report
8 years ago

Finance ministry calls banks to discuss new facility to drain cash: report

Live Mint  

Mumbai: The finance ministry has called bankers into a meeting on Friday to discuss setting up a new facility to absorb surplus cash in the banking system, according to a letter sent to heads of lenders seen by Reuters on Thursday. The finance ministry wants to discuss implementing a new framework called a “standing deposit facility”, the letter said, that …

India currency chaos continues as limits put on cash machines amid panic over withdrawal of high value rupee notes
8 years, 2 months ago

India currency chaos continues as limits put on cash machines amid panic over withdrawal of high value rupee notes

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy India’s banking system remains in …

Demonetisation: Rs 4,500 per day ATM limit is of little help when 2/3 machines run dry
8 years, 2 months ago

Demonetisation: Rs 4,500 per day ATM limit is of little help when 2/3 machines run dry

Firstpost  

When Prime Minister Narendra Modi addresses the nation on the New Year Eve, he should give clarity on how long the current cash shortage will continue. That’s the biggest worry for the common man ATMs will dispense a maximum Rs 4,500 per day per account holder beginning 1 January, said a circular from the Reserve Bank of India on Friday. …

Demonetisation: ATM recalibration is complete, but it's not going to help if there isn't enough cash
8 years, 2 months ago

Demonetisation: ATM recalibration is complete, but it's not going to help if there isn't enough cash

Firstpost  

There have been ATMs which have not been refilled even once since demonetisation due to the changed cash dynamics Today is the 50th day since Prime Minister Narendra Modi demonetised the old Rs 500 and Rs 1,000 notes. Before demonetisation, CMS representatives used to visit close to 30,000 ATMs on a daily basis to top up cash, but post demonetisation, …

Cash crunch may escalate during three-day bank holiday
8 years, 3 months ago

Cash crunch may escalate during three-day bank holiday

India TV News  

With three-day bank holiday starting today and a majority of ATMs still not functioning, the cash crunch in the country may escalate further leaving residents high and dry for want of cash during the weekend. Referring to the cash seizure of Rs 85 lakh in Rs 2,000 notes from a person at Matunga in central Mumbai by police yesterday, he …

People hoarding cash, deposits in new notes negligible, say besieged banks
8 years, 3 months ago

People hoarding cash, deposits in new notes negligible, say besieged banks

Hindustan Times  

Bankers in Delhi said the cash crunch has been worsened by people who are hoarding new notes. The people, however, are also to be blamed for the situation as Delhiites are not coming forward to deposit legal tenders and are also hoarding money leaving banks solely dependent on currency chest for money,” said an official from State Bank of India’s …

Demonetisation: Heavy rush of vehicles at petrol pumps to use old currency as deadline ends
8 years, 3 months ago

Demonetisation: Heavy rush of vehicles at petrol pumps to use old currency as deadline ends

Firstpost  

But RBI, after the demonetisation move, is making available new currency notes and we are expecting the situation will ease," said PNB general manager Chandigarh: With the deadline for using old Rs 500 notes at petrol pumps expiring on Friday, people made a frantic effort to go for last-minute refill even as bank customers continued to face hardships in withdrawing …

Demonetisation: As salary day heightens cash crunch, we may be facing a nightmare
8 years, 3 months ago

Demonetisation: As salary day heightens cash crunch, we may be facing a nightmare

Firstpost  

While banks are willing to give away Rs 2,000 notes and ATMs are loaded with these high denomination notes, customers are not willing to take these. Banks and customers may be staring at a nightmarish week ahead as demand for cash is expected to see a sudden spike with customers queuing up to withdraw their salaries to settle monthly bills. …

With banks, ATMs running out of cash, salary week likely to turn out ‘cash less’: Report
8 years, 3 months ago

With banks, ATMs running out of cash, salary week likely to turn out ‘cash less’: Report

India TV News  

The enormous cash crunch continues to cause more pain to people as shortage of cash forced banks to ration withdrawals and down shutters early as the supply of notes failed to keep up with the increasing demand. Pensioners and employees, who will hoard at bank branches during the pay week, are expected to suffer because of inefficient supply of cash …

Cash conspiracy: Bank staff, ATM fillers siphoning off notes
8 years, 4 months ago

Cash conspiracy: Bank staff, ATM fillers siphoning off notes

Deccan Chronicle  

Hyderabad: Cash logistics companies and their sub-contractors and staff, who deal with the physical movement and storage of currency notes on the behalf of banks, have emerged as the biggest suspects in the illegal conversion of black money post demonetisation. According investigating agencies, bank officials have even connived with cash management and ATM logistics companies to divert the new currency …

Demonetisation: How cash drought at India Inc resulted in stranded trucks, unpaid workers
8 years, 4 months ago

Demonetisation: How cash drought at India Inc resulted in stranded trucks, unpaid workers

Firstpost  

The cancellation of 500 and 1,000 rupee notes, more than 80 percent of currency in circulation, threatens to push Asia’s third-largest economy into a liquidity crisis. Sales at Somani’s aluminum foil maker, Rockdude Impex, have fallen by roughly a quarter in the past week, and the cash shortage that followed the “demonetization” drive has left his supply chain in tatters: …

Why Are ATMs Running Out of Cash? No, It Isn’t Only High Demand
8 years, 4 months ago

Why Are ATMs Running Out of Cash? No, It Isn’t Only High Demand

The Quint  

The government’s “surgical strike” on black money has lead to massive public inconvenience. The Reserve Bank of India said that 4000 currency chests across the country have enough stock of cash. The Quint visited SIS Cash Services, the cash logistics service provider to Delhi, NCR. The ban on 500 and 1000 rupee notes has left three of these ATM drawers …

Cash chaos in India: An unprecedented ban on large bills backfires on the poor
8 years, 4 months ago

Cash chaos in India: An unprecedented ban on large bills backfires on the poor

LA Times  

A cash crunch gripped India after Prime Minister Narendra Modi took the unprecedented step of withdrawing the country’s large currency notes from circulation The rickshaw meter read about $2.30, but passenger Gaurav Munjal didn’t have cash. pic.twitter.com/uWtejp60AM — Gaurav Munjal November 13, 2016 An exasperating cash crunch has gripped India in the week since Prime Minister Narendra Modi took the …

Demonetisation and after
8 years, 4 months ago

Demonetisation and after

The Hindu  

The long, anxious, and frustrating wait by people outside banks and ATMs across the country over the last five days is an inevitable consequence of the >decision to demonetise notes of Rs.500 and Rs.1,000. When 86 per cent of the value of notes in circulation turns suddenly invalid, as it did with Prime Minister Modi’s ‘surgical strike’ last week, a …

Industry bodies suggest ways to deal with cash crunch
8 years, 4 months ago

Industry bodies suggest ways to deal with cash crunch

The Hindu  

A day after Prime Minister Narendra chaired a meeting to review the demonetisation of Rs. The Prime Minister’s meeting came amid continuing chaos and growing public anger across the country over limited cash availability following the surprise demonetisation of the two higher value notes. > 'Demonetisation has inconvenienced people across country' The demonetisation move has "inconvenienced" people across the country, …

RBI advises people against hoarding, says enough cash available at banks
8 years, 4 months ago

RBI advises people against hoarding, says enough cash available at banks

India TV News  

The Reserve Bank of India on Sunday urged people not to repeatedly withdraw money from banks for hoarding saying that there was no shortage of cash in small denominations and enough cash was available at banks. "The Reserve Bank assures members of the public that enough cash in small denominations is also available at the Reserve Bank and banks,” the …

Demonetisation: Non-functioning ATMs, angry people; we might be staring at a disaster
8 years, 4 months ago

Demonetisation: Non-functioning ATMs, angry people; we might be staring at a disaster

Firstpost  

Samudra manthan brought out amruta, the elixir of life. The harrowing faces of helpless citizens queuing up for hours, only to be denied, countless tales of the economically-disempowered working sections of the society offering a line of credit to their affluent clients, many anecdotes of the sick and infirm being turned away from hospitals, people collapsing due to exhaustion amid …

Why are ATMs still out of service and out of cash ?
8 years, 4 months ago

Why are ATMs still out of service and out of cash ?

Live Mint  

Mumbai/Chennai/New Delhi: All major banks said their automated teller machines will be functional from Friday. In Mumbai and Delhi, most of the ATMs of banks such as State Bank of India, ICICI Bank Ltd, IDBI Bank Ltd, HDFC Bank Ltd and Canara Bank are currently not operational. After the government scrapped Rs500 and Rs1,000 notes, the banks are supposed to …

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