No cash in ATMs again? This survey says Hyderabad, Pune worst affected
Availability of cash in ATMs has worsened in some parts of the country. Hyderabad, Pune and Faridabad are among the worst affected cities, where hundreds of people said that cash dispensing ATMs were hard to find.
In Short
- Several cities facing ATM cash crunch again.
- Hyderabad worst affected a 83 per cent found no cash in ATMs.
- Delhi has best cash availability in ATMs.
Exactly a month ago on March 13, the Reserve Bank of India (RBI) lifted restriction on cash withdrawal limit from the banks and ATMs. The RBI's decision was based on its sustained push for remonetisation, which was going on in full flow since November.
And, now a survey has shown that despite the best efforts from the RBI, there are not enough cash available in ATMs, the least. People are facing fresh round of cash crunch in ATMs, the survey found.
According to a survey, conducted by citizen engagement platform LocalCircles covering 11 cities and over 10,000 people, 83 per cent respondents in Hyderabad said that they could not find cash dispensing ATMs between April 5 and 8 (the period of survey).
Similar situation was reported by the respondents from Pune, where 69 per cent of people said that they were unable to find ATMs having cash.
Delhi recorded the highest availability of cash in the ATMs. Only 11 per cent of participants from Delhi complained about non-availability of cash in ATMs.
It seems the cash crunch worsens as one travels farther from Delhi. However, Gurgaon and Faridabad are exceptions.
While 63 per cent people complained of cash shortage in ATMs in Faridabad, 42 per cent respondents from Gurgaon said ATMs did not dispense cash in their locality.
Overall, 36 per cent people complained about non-availability of cash in ATMs. Another four per cent said that they got cash after standing in queue for up to 30 minutes outside ATMs.
A similar survey conducted between February 14 and 16 had shown that only 22 per cent people complained of not finding ATMs having cash.
The April survey is the first time, when cash crunch situation has shown worsening trend since demonetisation was announced in November. In the first week of demonetisation, 66 per cent people complained of cash crunch. But, the cash availability kept improving till February.
It was expected that with strong push for remonetisation by the RBI, things would only improve. But, it seems cash crunch was addressed in places like Delhi, which is the centre of not only political power but also of media scrutiny.
WHY CASH CRUNCH
Remonetisation data shows that by March-end, currencies worth Rs 13.35 lakh crore were in circulation. On November 8, when demonetisation was announced notes worth Rs 17.98 lakh crore were in circulation. Back then, 86 per cent notes were declared invalid. Cash crunch set in but situation improved.
Now, the fresh round of cash crunch has led to all kinds of speculations.
The RBI's move to lift restriction on cash withdrawal is being blamed for the renewed cash crunch. It is being said that people are withdrawing money in greater amount after the RBI lifted restriction leaving the banks with less money to refill for ATMs.
The decision by the banks to impose transaction charges has further aggravated the situation. Even though, the bank transaction charges are not huge, a large number traders and people involved in businesses that thrive on cash are not re-depositing the money withdrawn from the banks. This has also hit the cash availability with the banks and hence the ATMs.
The RBI has slowed down the speed of printing currencies and it is expected the process of remonetisation will be complete by May-end.
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