Whenever we need cash, we go to the ATM and withdraw it immediately. But now the problem is that people are not getting enough cash. ATMs in the country are currently going through a cash crisis. The Confederation of ATM Industry (CATMi) has given this information to the Indian Banks Association (IBA). According to the revelations in the report of Business Standard, ATM services in the country may be disastrous in the coming time.
In March and April this year, there was a shortage of cash in ATMs across the country. Perhaps due to this, ATM transactions have also decreased. According to the report of ATM operators’ association CATMi, sufficient cash could not be received from banks and currency chests to fill ATMs in March and April.
In March, ATMs required cash of Rs 94,000 crore, but only Rs 61,000 crore (64%) was available. Similarly, in April, only Rs 54,000 crore was available as per the requirement. This clearly shows that ATMs across the country are facing a cash shortage.
It is being said that ATM services in many states of the country may be affected due to cash shortages. CATMi has written a letter to IBA (Indian Banks Association) regarding this and said that in many states, sufficient cash is not available for filling money in ATMs. This may especially affect the people of rural and semi-urban areas, where a large number of people rely on cash transactions. The Reserve Bank of India (RBI) has also been informed about this.
ATM operators say that the current ‘interchange fee’ is not enough to cover their expenses. An interchange fee is the amount that one bank charges for using another bank’s ATM. It is currently Rs 19. The cost of loading cash into an ATM has increased, fuel prices are rising, security guards’ salaries have been increased, and cash transportation costs have also been increasing. In such a situation, operating an ATM has become even more expensive.
On the other hand, ever since banks increased the per-transaction charge for customers after the free limit to Rs 23, people have been using digital payment methods more. This has led to a decline in the number of transactions done through ATMs by about 10.40%. To avert this crisis and prevent ATM services from being completely shut down, CATMi has requested banks and the Currency Management Department of the Reserve Bank of India to immediately intervene in the matter and increase cash flow.
