50 Per Cent ATMs in India to be Shut: Demonetisation Period-Like Cash Crunch Likely by March 2019
Citizens are expected to face a cash shortage once again after demonetisation as nearly 50 per cent of ATMs in India will be shut by March 2019.
New Delhi, November 21: Citizens are expected to face a cash shortage once again after demonetisation as nearly 50 per cent of ATMs in India will be shut by March 2019. According to the Confederation of ATM Industry (CATMi), around 1,13,000 ATMs including 1,00,000 off-site and more than 15,000 white label ATMs will be closed. There are approximately 2,38,000 ATMs across India.
"Service providers may be forced to close down almost 1.13 lakh ATMs across the country by March 2019. These numbers include approximately one lakh off-site ATMs and a little over 15,000 white label ATMs," the industry body said in a statement on Wednesday. It further said the closure of ATMs at such a large scale will not only eat several jobs but also hit the government's financial inclusion efforts. ATM Cash Crunch Makes The Machine 'ATM Deva' as Kanpur Shopkeepers Perform Aarti, Video Goes Viral.
"This would severely impact millions of beneficiaries under the Pradhan Mantri Jan Dhan Yojana who withdraw subsidies in the form of cash through ATMs, besides urban centres, resulting in snaky queues and chaos akin to post-demonetisation," a spokesperson told IANS. The industry body blamed demonetisation for mounting pressure on the ATM industry.
It said that the ATM industry, including managed service providers, brown-label ATM deployers and white label ATM operators (WLAO), is still reeling under the shock of demonetisation. "The situation has further deteriorated now due to the additional compliance requirements that call for a huge cost outlay. The service providers do not have the financial means to meet such massive costs and may be forced to shut down these ATMs,” it added.
The industry body said the situation will improve if banks “step in to bear the load of the additional cost of compliances”. "Unless ATM deployers are compensated by banks for making these investments, there is likely to be a scenario where contracts are surrendered, leading to a large-scale closure of ATMs,” it said. SBI Reduces Daily Cash Withdrawal Limit For Classic And Maestro Debit Card Holders From ATMs.
A massive cash shortage hit India after Prime Minister Narendra Modi had demonetised old Rs 500 and Rs 1000 notes on November 8, 2016, withdrawing 86 per cent of banknotes from circulation. ATM operators had to install new systems to dispense new Rs 500 and Rs 2000 notes.
(The above story first appeared on LatestLY on Nov 21, 2018 06:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).