The gruelling days of scouting for Automated Teller Machines (ATMs) dispensing cash post demonetisation have returned with most of the kiosks running dry for the last three to four days. ‘No Cash’ signboards on the ATM doors are a common sight in the city. The situation is no different in other parts of the State.
According to information reaching here, cash remittances from the Reserve Bank (RBI) are not matching the demand. The RBI did not scale up the remittances though it relaxed withdrawal limit norms.
Recently, the RBI allowed people to withdraw up to Rs. 24,000 from ATMs in a single transaction, withdrawing a limit imposed during a severe crunch after the ban on ₹500 and ₹1,000 notes.
So, people started withdrawing money in bulk amounts, but the remittances remained the same as those during the demonetisation period, putting the banks under pressure. In fact, some of the public sector banks (PSBs) have nearly run out of cash. For instance, the Indian Bank Vijayawada Region chest has mere ₹20 lakh on hand. Other PSBs too are more or less in the same situation, sources said.
SLBC member differs
“We are unable to replenish the cash immediately owing to cash shortage. But we are trying to ensure that the cash is available in the machines,” said an official of the State Bank of India (SBI), adding, “We are hopeful that the situation will ease in a day or two.”
The bankers are citing many reasons for cash shortage. Relaxation in withdrawal limit is the reason mostly cited by the bankers.
However, a member of the State Level Bankers Committee (SLBC) said available cash was being diverted for disbursing social security pensions and salaries of government employees. Crop loan lending, self-help groups (SHGs) withdrawals and loans were the other causes, he said.
According to information, only 5,900 of the 8,036 ATMs across the State as on November 21, 2016, are active. Most of these ATMs were dysfunctional. Of this, 449 ATMs are located in the city and suburbs, including Gannavaram, Penamaluru and Thotlavalluru.
