Daijiworld Media Network – New Delhi
New Delhi, Jun 8: The Department of Financial Services (DFS) has sought urgent feedback from banks on reported difficulties in replenishing cash at ATMs across the country, amid growing concerns over possible service disruptions and cash shortages, particularly in rural and semi-urban areas.
According to reports, the DFS has asked bank chief executives to examine the issue and provide details on the reasons behind the reported cash replenishment problems and the measures being taken to address them. The department reportedly sought an immediate response from banks, underscoring the seriousness of the matter.
The move follows warnings from the Confederation of ATM Industry (CATMi), which recently alerted the banking sector that cash availability for ATM loading was becoming a challenge and could affect ATM services across the country. The industry body said the issue could particularly impact rural and semi-urban regions where dependence on cash remains high and ATMs serve as a crucial access point for government benefit transfers and daily transactions.
ATM operators have reported difficulties in drawing sufficient cash from bank branches and currency chests in several states. Industry estimates indicate that operators received only a fraction of their cash requirements during recent months, raising concerns about the ability to keep ATMs adequately stocked.
Despite the concerns, Sanjay Malhotra, Governor of the Reserve Bank of India, has assured that adequate currency stocks are available in the system and that any shortages at ATMs will be addressed promptly. He said the RBI would ensure rapid delivery of currency wherever shortages are reported.
The issue has emerged even as currency in circulation in India remains at record levels. Industry representatives have attributed the problem to operational and distribution challenges rather than an actual shortage of currency. Rising logistics costs, difficulties in accessing cash supplies and uneven distribution of cash across regions have been cited among the key factors.
Banks also face regulatory penalties if ATMs remain without cash beyond prescribed limits. Under RBI norms, banks and white-label ATM operators can be fined if an ATM remains effectively out of cash for more than 10 hours in a month.
The government and banking sector are now closely monitoring the situation to ensure uninterrupted cash availability and prevent inconvenience to customers.