Daijiworld Media Network – New Delhi

New Delhi, Jun 5: The Confederation of ATM Industry (CATMi) has warned of possible disruptions in ATM services across the country due to a shortage of cash available for replenishing machines, particularly affecting rural and semi-urban areas where cash remains a primary mode of transaction.

According to a Business Standard report, CATMi has written to the Indian Banks' Association (IBA), highlighting difficulties faced by ATM operators in drawing cash from bank branches and currency chests in several states. The issue has also been raised with the Reserve Bank of India's Department of Currency Management.

Industry figures indicate that while ATM operators required around Rs 94,000 crore for cash loading during March and April, only Rs 61,000 crore and Rs 54,000 crore respectively were made available. This resulted in cash availability levels falling well below requirements.

The industry body noted that ATMs continue to serve as a crucial cash access point for beneficiaries of government direct benefit transfer schemes and for residents in areas where digital payment adoption remains limited.

Apart from cash shortages, ATM operators are also facing mounting financial pressure due to rising fuel costs, increased wage expenses and a sharp decline in transaction volumes. Industry sources said ATM usage has fallen faster than anticipated as more consumers shift to digital payment platforms.

Reserve Bank data showed ATM transactions declined significantly over the past year despite continued growth in currency circulation, highlighting changing consumer payment patterns.

CATMi has cautioned that unless cash supply issues are addressed promptly, ATM availability could be affected in several regions, potentially impacting millions of users who continue to depend on cash withdrawals for their daily needs.