New Delhi: Here's a statistic that will put the cash shortage at ATMs in perspective: In the last three years the number of ATMs has almost tripled, while the number of people transporting the cash to ATMs has remained the same.
A FICCI report on Cash Logistics from 2013 pegs the number of ATMs in the country at 80,000. The number of people employed by the cash logistics industry – the people involved in the physical movement and storage of currency notes – is 40,000 while the number of transport vans was pegged at 6,000. That number now stands at 2,01,000 ATMs; 40,000 people and 8,800 cash vans.
The same number of people have to service almost thrice the number of ATMs and the demonetization and consequent replenishment – with lower denomination notes – has put an enormous strain on the industry, which has to transport cash, and customers, who are queuing up outside empty ATMs.
Transporting cash is a risky business and personnel have to be trained, verified and authorized to operate in the industry. The cash logistics companies, around 7 of them, offer secured cash transportation from the currency chests to bank branches and ATMs across the 650 districts of India.
Rituraj Sinha, President of the Cash Logistics Association of India, said that leaves for all personnel were cancelled after the government announcement and people were working double shifts to ensure that banks and ATMs were kept supplied with cash. He said that it will take 3-5 days to “get this under control”.
Currently, cash as running out at ATMs in 3-4 hours because each machine has 10 times the number of people queuing up outside when compared to an average day. Whereas ATMs earlier could hold Rs 30 lakh (because they had 500 and 1,000 rupee notes) they can only hold Rs 10 lakh now (stocked with 100 rupee notes).
All this has created a perfect storm of cash shortage, which the government probably did not anticipate.
But there is good news. Rituraj Sinha said that the withdrawal of 500 and 1,000 rupee notes from ATMs across the country was “73% complete as of last night.”
“This is an unprecedented cash logistics operation being done under exceptional circumstances and our people are working under tremendous pressure,” Sinha told News18.com. He said that tents have been set up at the cash centres for personnel to catch a few winks of sleep as they work from early morning till late at night to ensure that the new notes reach their destination.
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