The Finance Ministry has directed the chief executives of banks, especially public sector banks, to quickly tackle the shortage of currency notes at ATMs in certain parts of the country.

Department of Financial Services (DFS) Rajeev Kumar had on Tuesday evening held a video conference with the heads of various banks to review the situation and drive home the message that cash availability needs to be improved at ATMs, sources said.

This DFS action follows Government admitting that there is a temporary shortage of currency notes due to “sudden and unusual” increase in currency demand in some areas of the country.

Situation improving

Meanwhile, State Bank of India, the country’s largest commercial bank, said on Wednesday that cash availability at its ATMs has improved in the last 24 hours following reports of currency shortages and ATMs running dry in different parts of the country.

“Availability of cash in SBI ATM has improved in the last 24 hours. Efforts are being made on a continuous basis to improve the cash availability further in a few geographies,” Neeraj Vyas, Deputy Managing Director (Chief Operating Officer), SBI, said in a statement.

“Overall issue of less cash should come to normalcy within soonest possible time. We are constantly monitoring the situation and making immense efforts to ensure the supply of currency in abundance at all our ATMs,” Vyas added.

Several bankers indicated that cash shortage was limited to certain pockets of the country and not a problem across the country.

Srivats.kr@thehindu.co.in

comment COMMENT NOW