New Delhi, June 5: In a warning that may have serious implications on the public, an association of ATM Operators has reportedly warned that there has been a declining trend of currency available for the cash-dispensing machines in the recent months.
The Confederation of ATM Industry (CATMi), which represents ATM operators, cash logistics firms and service providers, has reportedly said that the availability of cash at ATM machines has been reducing.
In a report submitted to the Indian Banks’ Association (IBA), the CATMi has said that ATM operators received only 64% of their cash requirement in March and 57% in April.
This is despite the claim by the Reserve Bank of India (RBI) that currency in circulation stood at a record ₹42.54 lakh crore as of 22 May, up nearly 12% from a year ago.
So, if more cash is available in the system than before, why are ATMs struggling to dispense it?
According to CATMi, ATM operators needed about ₹94,000 crore for replenishment in both March and April. But only ₹61,000 crore was available in March and ₹54,000 crore in April.
Impact
If the ATMs face shortage of currency, the impact is likely to be felt most by those who depend on cash for their daily needs.
In large cities, the inconvenience could be lesser as one can look for another ATM, in case one runs out of cash.
Otherwise, the digital payments can be resorted to.
However, in rural and semi-urban areas, trouble for people can be more as the ATMs are much lesser and transactions are majorly done in cash.
People in such areas use ATMs to withdraw pensions, government benefits and other payments credited directly to their bank accounts to conduct transactions related to daily expenses and others.
ATM Usage Declining
According to RBI data, ATM transactions dropped by over 10% to 446.5 million in May from 498.4 million a year earlier.
The value of withdrawals also dropped from around ₹2.64 trillion to ₹2.5 trillion.
This means operators are handling fewer transactions while facing higher operating costs.
The rapid adoption of UPI has accelerated this trend.
Although digital payments have reduced ATM usage, operators still need to maintain the same infrastructure to serve customers who continue to rely on cash.
Digital payments are becoming more common, but they may not always be an option due to patchy internet connectivity or limited acceptance in some areas.
