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Cash crunch in ATMs hits customers

Cash crunch in ATMs hits customers
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Highlights

Bank customers are facing many hardships due to non-availability of cash at ATMs across the city. Employees and people withdraw money from the ATMs to meet their needs, especially in the first week of the month. Unfortunately, most of the 150-odd ATMs located in and around the city have no cash for many weeks.

Vijayawada: Bank customers are facing many hardships due to non-availability of cash at ATMs across the city. Employees and people withdraw money from the ATMs to meet their needs, especially in the first week of the month. Unfortunately, most of the 150-odd ATMs located in and around the city have no cash for many weeks. ‘No cash’, ATM out of service boards are seen at the ATM centres across the city causing a lot of inconvenience to the people.

1. People suffer due to non-availability of cash
2. No cash, ATMout of service are common boards seen at ATMs
3. Uncertainty prevails over the availability of cash in ATMs

Common people spend most of their expenses like house rent, net bills, cable, dish bill, electricity bills in the form of cash. So, they need hard cash to meet their monthly and weekly expenses. But, a large number of bank customers are not able to withdraw cash from the ATMs in the city due to lack of cash.

Short supply of cash from the RBI is said to be the prime reason for non-availability of cash in the city. Banks get cash from the RBI on a regular basis. But due to short supply for many weeks, the banks are not in a position to maintain cash in the ATMs. It is estimated that Krishna district needs Rs 5,000 crore immediately to cater to the needs of the customers of over 40 banks with 800 branches in the district.

Most of these banks are giving priority for the implementation of welfare schemes like payment of pensions, loans to the farmers, small scale industries and to the self-help groups. The district administration is also keeping pressure on the banks to give priority to the welfare schemes keeping in view of the ensuing elections which are due in less than a year.

Deputy Zonal Manager of Indian Bank G Sambasiva Rao told The Hans India that the banks and the district administration work in coordination in implementation of welfare schemes. He said though the banks face cash crunch they have to fulfil the requirement of the government departments.

He said lakhs of farmers get loans for cultivation of crops and the rice millers take bank loans for payment to the farmers. He pointed out that there is direct relationship between the banks and farmers, traders and the rice millers. He said the state government and the banks are asking the RBI to pump in more cash to meet the requirements of the customers.

Most bank branches are giving top priority to their own customers. If the bank branches keep money in the ATMs the customers of other banks may withdraw from the ATMs. In order to fulfil the requirement of their own customers, the bank branches are keeping money in their branches rather than keeping in ATMs.

Uncertainty prevailed among the customers about the availability of cash in ATMs since majority of them in the city are left without cash. Even private banks are facing similar problem in recent weeks. Whenever the cash is available in ATMs, some customers are withdrawing maximum cash from the ATMs and keeping money at their homes. This is also one of the reasons for the non- availability of cash in the ATMs. It is unclear how long uncertainty will continue.

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