Cash crunch: ATMs are running dry across India; government says needs three days to fix problem

Agencies
April 17, 2018

New Delhi, Apr 17: ATMs in several cities across the country, operated by both state-run and private banks, are reportedly running dry. The problem seems to have affected ATMs in cities and towns across Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh, according to media reports.

One reason for this could be that cash withdrawals at some bank branches and their ATMs are much higher than deposits made at those branches.

An email sent to the Reserve Bank of India (RBI), on Tuesday, seeking response on the reported cash shortage, remained unanswered when this report was published.

Commenting on the cash crunch, Finance Minister Arun Jaitley assured hassled customers that the government will resolve the problem 'quickly'. Minister of State (MoS) for Finance SP Shukla said the Centre needs three days to fix the problem. Separately, State Bank of India (SBI) Chairman Rajnish Kumar told CNBC-TV18 that there is sufficient cash in the system.

Troubled customers tweeted about the non availability of cash at ATMs.

West Bengal Chief Minister Mamata Banerjee, on Tuesday, said the situation reminded her of the demonetisation days.

Communist Party of India member Sitaram Yechury too took to twitter to express his angst.

MoS for Finance Shiv Pratap Shukla said: "We've cash currency of Rs 1,25,000 crore right now. There is one problem that some states have less currency and others have more. Government has formed state-wise committee and RBI also formed committee to transfer currency from one state to other. It will be done in three days."

Earlier, referring to reports of ATMs running out of cash at some places in his state, Madhya Pradesh Chief Minister Shivraj Singh Chouhan claimed that Rs 2,000 notes were vanishing from the market, and alleged that there is a 'conspiracy' behind their disappearance. Addressing a farmers' convention, Chouhan said: "The currency worth Rs 15,00,000 crore was in circulation before demonetisation. After this exercise [demonetisation], the currency in circulation increased to Rs 16,50,000 crore. But notes of Rs 2,000 are missing from the market."

Several states have faced cash shortages despite the fact that currency flows are now at the pre-demonetisation level. A recent analysis by the RBI has found that the rate of cash withdrawals were far more than cash deposits at banks in states like Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Telangana, according to a report.

According to RBI data, currency in circulation as on 6 April was Rs 18.17 lakh crore.

Bank run

In March, the government's Financial Resolution and Deposit Insurance (FRDI) bill triggered a bank run in two southern states. Thanks to a fear of losing their hard earned money, because of a bail-in clause in the FRDI Bill, people in Andhra Pradesh and Telangana queued up to withdraw fairly large amounts from their bank accounts. The salaried, who typically withdraw only Rs 5,000 to Rs 10,000 in the first few weeks of any month, were seen queuing up to draw the entire amount from ATMs immediately after their salary was credited.

ATMs ran dry immediately after the demonetisation drive was announced, on 8 November, 2016, as people rushed to pull out as much cash as possible.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
coastaldigest.com news network
December 2,2025

karkala.jpg

Udupi, Dec 2: A wave of regional pride is sweeping through Udupi district as Shagun S Verma Hegde, a talented Class 9 student from Christ King English Medium High School, Karkala, has been named the captain of the Indian National Team for the Under-15 Girls’ Volleyball Championship.

Shagun holds the unique distinction of being the sole player from Karnataka selected to represent the country in the prestigious international tournament. The championship, organized by the School Games Federation, is scheduled to take place in Shangluo, China, from December 3 to 13, where Shagun will lead the national squad.

A Remarkable Journey to the Top

Shagun’s selection is a testament to her dedication and exceptional skill on the court. Her journey included several rigorous rounds of selection:

•    She was the only player from Udupi district to qualify for the state-level selection camp.

•    Out of eight players from Karnataka who advanced to the national selection camp in Pune, Maharashtra, Shagun was the only one to secure a place in the final national squad.

•    The national camp saw participation from approximately 200 players, which was shortlisted to 23. Shagun not only made the final cut but was also ranked as the second-best player overall, solidifying her leadership role.

Shagun, who is the daughter of Sandesh Verma and Shruthiraj of Kallotte, Karkala, has trained under experienced coaches Santosh D’Souza, Jeevan D’Silva, Jairaj Poojary, and Ramesh. Her selection as the team captain has brought profound honour to her family, school, the Udupi district, and the entire state of Karnataka.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 30,2025

girlnomore.jpg

Mangaluru, Nov 30: A 22-year-old college student succumbed to her injuries at a private hospital in Mangaluru today, days after she was hit by a goods tempo while crossing a road in Padubidri.

The deceased has been identified as Preksha, a resident of Nadsalu Billitota in Padubidri. The fatal incident occurred as Preksha, who was returning home after completing her examination, attempted to cross the service road towards Mangaluru. She was struck by a goods tempo approaching from the Udupi side, causing her to fall and sustain a severe head injury.

Prompt action from local residents ensured she received immediate first aid before being rushed to a hospital in Mangaluru for specialised treatment. Despite medical efforts, she passed away while undergoing care.

Preksha was a student at Karavali College, Vamanjoor on the outskirts of Mangaluru city. The tragedy is compounded by the fact that she belonged to a financially vulnerable family, having previously lost her father. She is survived by her mother and brother.

A case related to the accident has been registered at the Padubidri police station, and an investigation is underway to determine the exact circumstances that led to the collision. The incident highlights the growing concerns over road safety, particularly on busy service roads, and serves as a tragic reminder of the human cost of traffic accidents.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
November 26,2025

Mangaluru, Nov 26: Assembly Speaker and local MLA U.T. Khader has initiated a high-level push to resolve one of Mangaluru’s longest-standing traffic headaches: the narrow, high-density stretch of National Highway-66 between Nanthoor and Talapady.

He announced on Tuesday that a formal proposal has been submitted to the Union Ministry of Road Transport and Highways (MoRTH) seeking approval to prepare a Detailed Project Report (DPR) for the widening of this crucial corridor.

The plan specifically aims to expand the existing 45-meter road width to a full 60 meters, coupled with the construction of dedicated service roads. Khader highlighted that land for a 60-meter highway was originally acquired during the initial four-laning project, but only 45 meters were developed, leading to a perpetual bottleneck.

"With vehicle density rising sharply, the expansion has become unavoidable," Khader stated, stressing that the upgrade is essential for ensuring smoother traffic flow and improving safety at the city's main entry and exit points.

The stretch between Nanthoor and Talapady is a vital link on the busy Kochi-Panvel coastal highway and connects to major city junctions. The move to utilize the previously acquired land for the full 60-meter width is seen as a necessary measure to catch up with the region's rapid vehicular growth and prevent further traffic gridlocks.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.