Demonetisation: HUGE drop in number of ATMs disbursing cash despite unending lines

Only 27,000 of  2.10 lakh ATMs are being loaded with cash on a daily basis, as compared to around 63,000 teller machines that used to get loaded in November, as per a news channel report.

The figures point toward a worsening cash crunch in the country, contrary to government’s rhetoric of more of new currency being injected into circulation to meet the demand.

According to CNBC TV18, India’s central bank has been pumping more money into banks than into ATMs. The ATMs are reportedly being loaded with Rs 7-8 lakh per machine, which adds up to Rs 1,900-2,000 crore of cash a day.

There have been numerous reports of large quantities of new currency notes being seized from individuals across India, with bank officials found to be in cahoots in money laundering in some cases. Critics may see this as a symptom of RBI’s practice of injecting more money into banks than into ATMs.

The channel reported that around Rs 4.60 lakh crore worth of new currency has been printed since Nov 8 when the note ban came into effect, much lesser than Rs 13.6 lakh worth of old currency reportedly nixed overnight on account of demonetization.