India: Widespread ATM cash shortages

Event

ATMs have been running out of cash in parts of Telangana, Andhra Pradesh, and Karnataka states. Among the worst affected cities are Hyderabad, Bhopal, Surat, Varanasi, and New Delhi. 

Context

Cash shortages have affected numerous banks throughout the country since November 2017. Bank officials have blamed the shortages on falls in deposits and increases in withdrawals, notably at the beginning of each month. However, some claim that the Reserve Bank of India (RBI) may have deliberately reduced cash supplies to banks to force people to make digital payments and increase cashless transactions.

Advice

Individuals present in India should be prepared for cash shortages, to withdraw cash when available, and to be vigilant when using ATMs.