Heading to an ATM? Read This First...

Complaints over cash shortages in ATMs are increasing across several Tier 2 cities and smaller towns in India. Customers in Andhra Pradesh, Telangana, and Karnataka have reported that ATMs have frequently run out of cash over the past three months, causing inconvenience during cash withdrawals.

The Reserve Bank of India (RBI) has reportedly taken note of the issue and asked banks to submit reports on cash availability at branches responsible for replenishing ATMs. The Confederation of ATM Industry (CATMI) also informed the Indian Banks' Association that, during April and May, cash availability in some ATMs was only 57% to 64% of their average capacity.

Banks, however, say that not all cash available at branches can be loaded into ATMs, as some notes are damaged or unfit for circulation. They also cited rising operational costs and cash management challenges as key reasons for the shortage and the slow expansion of ATM networks.