In a situation that serves as a reminder of the days following demonetisation, ATMs across various locations in India have run dry. Reports of ATMs running out of cash have been pouring in from cities and towns across Karnataka, Andhra Pradesh and Telangana.
Meanwhile, Finance Minister Arun Jaitley tweeted that the issue is being looked into.
“Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly,” he said.
Have reviewed the currency situation in the country. Over all there is more than adequate currency in circulation and also available with the Banks. The temporary shortage caused by ‘sudden and unusual increase’ in some areas is being tackled quickly.
— Arun Jaitley (@arunjaitley) April 17, 2018
In response to the Finance Minister, KT Rama Rao, a minister in the Telangana cabinet, said that this was an issue being faced by customers for the last three months.
“Sir, with due respect the cash shortage in Banks & ATMs is neither sudden nor temporary. I’ve been hearing complaints for over 3 months repeatedly in Hyderabad.
Pls have RBI & Fin Min team dig deeper & not brush away an issue that is eroding people’s confidence in banking system,” he tweeted.
Sir, with due respect the cash shortage in Banks & ATMs is neither sudden nor temporary. I’ve been hearing complaints for over 3 months repeatedly in Hyderabad
— KTR (@KTRTRS) April 17, 2018
Pls have RBI & Fin Min team dig deeper & not brush away an issue that is eroding people’s confidence in banking system https://t.co/llHzY6kiox
Many Twitter users complained about the lack of cash in ATMs.
Lastweek in #Hyderabad it took 4hours and 7kms for me to withdraw 2k #cashcrunch
— RaheemYounus Shaik (@OrangeArmySRH) April 17, 2018
Where's the money going from banks??
Is the cash crunch situation worsening? Today in hyderabad#cashcrunch #CashlessATMs pic.twitter.com/5QMA1Zxw4U
— Anil Padmanabhan (@capitalcalculus) April 17, 2018
Losing trust in India's banking system. Have been running around ATMs and banks. Not only 80% ATMs in hyderabad are out of cash, even banks are not having cash. #cashcrunch #telangana #RBI
— Ajeeb Si Soul (@Ajeeb_si_soul) April 17, 2018
From last 2 days facing severe cash crunch allover in #AndhraPradesh ATMs also empty today in #Tirupathi & #Visakhapatnam#cashcrunch
— Sree (@sreeni0304) April 17, 2018
I see that there is no cash available in ATM from past 3-4 days in Bangalore near my home. Creating temporary cash crunch for the purpose of election?
— Samrudh (@samjag123) April 3, 2018
Same in Bangalore... I could withdraw after trying in 7 Atm's
— Dharini Iyer (@Jadore_Les_Rose) April 17, 2018
Since morning visited seven #ATM in Bangalore. Finally, queueing in a bank counter with a cheque leaf. https://t.co/ByktyT3hNz
— MachineLearning (@ameershahul) April 17, 2018
I am in Bangalore and in my area almost all ATM are dried, very difficult to get cash now a days from ATM, we have almost 16 ATM near to my place.
— Vivek Rastogi (@vivekrastogi) April 16, 2018
According to Business Standard, an analysis conducted by the Reserve Bank of India showed that more cash was being withdrawn than deposited in states such as Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana.
“We have cash currency of Rs 1,25,000 cr right now. There is one problem that some states have less currency and others have more. The government has formed state-wise committee & RBI also formed a committee to transfer currency from one state to other. It'll be done in 3 days,” Minister of State for Finance, SP Shukla, told ANI.
SBI Chairman Rajnish Kumar Sinha told ANI that this was a “temporary situation which is mainly due to geographical factors.”
According to Reserve Bank of India data, currency in circulation as on April 6 was Rs 18.17 lakh crore. Industry experts feel the shortage has been caused because of hoarding of the Rs 2,000 currency notes.
Earlier, speaking about the cash crunch in Telangana, the state’s Finance Minister Etala Rajender reportedly told the Telangana Legislative Council that the reason for the same is due to reduced cash inflows.
“The crunch is due to inadequate supply of currency by RBI, reduction in cash inflow from the public, high demand for higher denomination notes. ATMs are going dry and banks are also not giving cash. RBI officials are saying cash going out of banks is not coming back in Telangana and Andhra,” he said.