Concerns over cash availability at some ATMs in smaller cities and towns have prompted fresh intervention from the Reserve Bank of India (RBI), which has assured that sufficient currency is available and that cash dispensing machines across the country will continue to be replenished as required.
This problem surfaced after the Confederation of ATM Industry (CATMi), which works for the interests of ATM service providers, voiced its concern about cash sourcing troubles at some places. According to industry insiders quoted by The Economic Times, CATMi has also been trying to seek compensations from the banking industry on the pretext of loss due to ATMs being out of action.
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Industry flags uneven cash distribution
The ATM industry body has alleged that a significant portion of available cash is being directed towards ATMs in major metropolitan areas, particularly within the network of State Bank of India (SBI), which operates the country's largest ATM network. Industry representatives claim that this has left some smaller towns and semi-urban centres facing intermittent cash shortages.
As per CATMi, ATM operators received only 57 per cent of their cash requirement in April 2026, compared to nearly 80 per cent in November 2025. The organisation has warned that prolonged shortages could affect the viability of ATM operations in locations where transaction volumes are already under pressure.
A senior ATM industry executive quoted by The Economic Times claimed that cash availability has steadily declined over recent months, adding that operators in smaller markets are facing increasing operational challenges.
RBI says adequate currency available
Responding to the concerns, RBI Governor Sanjay Malhotra said the central bank has sufficient currency reserves and is prepared to address any supply gaps.
Speaking after the latest monetary policy announcement, Malhotra said the RBI estimates annual currency requirements and ensures that banks receive adequate supplies for distribution.
"We will ensure if there is a shortage, we have sufficient currency to go and fill and refill the ATMs and bank branches," the RBI Governor said.
Official data suggests that overall currency availability remains robust. According to RBI figures, currency in circulation stood at more than ₹42.56 lakh crore as of May 29, 2026, reflecting an increase of around 12 per cent compared with the same period last year.
Digital payments rise, ATM operators face pressure
These issues arise as digital payment platforms see increasing use throughout India. As per data by CATMi, the total number of ATM cash withdrawal transactions per month have reduced from almost 57 crore in January 2023 to 44 crore by September 2025.
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It is said that falling transaction numbers in combination with increased fuel prices, logistics cost, and salaries have put pressure on the profit margins of ATM companies.
Even though certain difficulties have been reported by some operators, there does not seem to be any significant disruption faced by ATM services as of now. As mentioned by the RBI, sufficient currency is available, and any localised shortages can be handled through regular replenishments.
For consumers, the situation is unlikely to cause any trouble. Even though certain ATM machines in smaller places might experience cash-related issues, there does not seem to be any shortage of currency, nor any plan to limit ATM services.
