Currency with public declines slightly as ATMs run dry

According to the RBI data, there was a 4 percent increase in currency in the hands of the public at Rs 12.64 lakh crore as on March 31, as against a 7 percent rise a fortnight agoAs ATMs run out of cash, the pace of currency availability with the public slowed towards the end of March.

According to the RBI data, there was a 4 percent increase in currency in the hands of the public at Rs 12.64 lakh crore as on March 31, as against a 7 percent rise a fortnight ago at Rs 12.13 lakh crore as on March 17. The increase in the preceding two fortnights was 6.8 per cent and 8.5 percent.The currency with public was at a low of Rs 7.8 lakh crore in December, immediately after the cash ban, while it was at a peak of Rs 17.01 lakh crore as of October-end before demonetisation.Nearly five months since the Prime Minister Narendra Modi announced the sudden doing away of old Rs 500 and Rs 1000 rupee notes on November 9, there has been a gradual pickup in the cash in circulation in the economy, but now seems to be some liquidity crunch again in some regions of the country.

Many ATMs were running dry in the past month in places such as Hyderabad, Andhra Pradesh, Telangana, Mumbai and Pune after they faced occasional shortage of cash supply, even as average transactions had returned to normal pre-demonetisation days.The supply of currency from banks to ATMs has dipped to 50 percent from the pre-November 8 levels. Before November 8, banks' supply to ATMs was an average Rs 12 lakh per booth, which has now declined to Rs 6 lakh per booth, according to reports.Bankers say they are filling the ATMs where they see the largest usage, which could be commercial office areas and the more densely populated locations. “There could be some off-site ATMs in not-so-populated locations, especially the rural areas which might get adequate loading in the next 2-3 weeks,” said a banker with a large public sector bank.

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