Cash flow improves, it will be any time money at ATMs soon
Cash logistics companies, which are responsible for filling up of ATMs and taking cash across the country, say that compared to December 31 not only has the number of ATMs being filled up doubled, the amounts stashed into the machines has gone up ...
Cash logistics companies, which are responsible for filling up of ATMs and taking cash across the country, say that compared to December 31 not only has the number of ATMs being filled up doubled, the amounts stashed into the machines has gone up three fold.
“In the first week of January, banks have more-than-doubled their allocation of cash to the ATM network in comparison to December, and also the supply of 500 denomination notes have become adequate,“ said Rituraj Sinha, president of Cash Logistics Association of India.
Industry insiders ET spoke to said in the months of November and December, even after a major chunk of the ATM network was tweaked to facilitate fitting of the new-sized notes, supply of cash had been about 10% of the original number.So, only 50,000 to 60,000 ATMs were refilled daily and 30 40% of the machines were working.
“That number has gone up now with around 1.25lakh ATMs get ting re plenished per day along with greater supply of smaller de nomination notes for the ATM network,“ an indus try insider said. There are around 2.02 lakh ATMs in the country.
“The biggest problem was that demand for cash had shot up so much that ATMs were seeing increased footfalls which caused the cash stuffed in to get over within two to three hours,“ said another chief executive of an ATM company. “Now every machine is being filled with anything around `15 lakh per day instead of the `5 lakh per day last month.“
ATM operators had complained about how major banks hoarded cash as they wanted to reserve the currency notes for their own customers instead of putting it in ATMs where they could be accessed by customers of other banks.