Why cash shortage in ATMs?
Posted on: 17/Apr/2018 5:30:33 PM
There is a severe shortage of cash prevailing in the ATM of the states of Gujarat and Madhya Pradesh. Some explanations are put forward for this:
Actually, there is a severe shortage of cash prevailing in the ATMs in Delhi, Madhya Pradesh, Delhi, Bhihar, Gujarat, Telangana, and Uttar Pradesh.
Some time back, during the immediate period after demonetization, the people experienced severe hardships facing acute shortage of cash in the ATMs.
Presently, there is a similar trend of people facing acute shortage of cash in the ATMs.
The only redeeming point maybe is that the cash shortage is not so acute in the state of Tamil Nadu.
However, some problems persist in the areas of Vellore, Vaniyambadi, Tirupathur, and Thiruvannamalai.
The reasons put forward for the above situation:
In many states, the incidence of withdrawals of cash is very much more than the deposits of cash.
The incentive given the banks by the Reserve Bank of India for encouraging digital financial transactions has been reduced. This has probably led to the banks having a shortage of cash to fill in the ATMs.
The technology of including the recent release of currency notes in the ATMs has still not been carried out in many ATMs. This means difficulty in filling the ATMs with the newly released currency notes.
It is also gathered that the proper priority of selecting the ATM locations where more money is to be kept and where less money would be ok has not been considered and implemented properly.
After the demonetization, the public has stopped depositing money in the banks to a large extent. They prefer to have the cash on hand for the expenses.
The Legislative Assembly elections are to be held shortly in the state of Karnataka. In this regard, there is a complaint large sums of money have been taken into custody for the purpose of the elections.
The central minister for finance, Arun Jaitley, has informed that as there is an abnormal increase in demand for cash, a shortage is prevailing. He explained that activities have been initiated forming teams on behalf of the Reserve Bank of India in order to implement tasks to reduce the shortage of cash. The minister also informed that this is just a temporary measure and a permanent solution will be found soon.
