Knews Desk- Despite the increasing trend of digital payments in the country, the demand for cash is continuously increasing. According to the latest data of the Reserve Bank of India (RBI), as of May 29, 2026, the cash in circulation in the country has reached more than Rs 42.56 lakh crore, which is about 12 percent more than last year. However, despite this, people in many areas are facing difficulties in withdrawing money from ATM.
Cash Logistics and ATM Industry Confederation (CATMi), an organization of ATM operators, has written a letter to the Indian Banks Association (IBA) expressing concern over this problem. The organization says that sufficient cash is not being made available to refill ATMs. While the cash supply shortfall was 20 percent in November 2025, it increased to 36 percent by March 2026 and to 43 percent in April 2026.
According to CATMi, only 57 percent of the cash required was available to ATM operators in April. The organization also said that from the end of December 2025, there are continuous problems in delivering cash from bank branches and currency chests to ATMs in many states.
The organization says existing ATM contracts were based on the assumption that cash transactions would decline only 2.5 to 3 percent each year. But the actual situation is quite different from this. Additionally, the increase in charges for using ATMs beyond the free limit has also pushed people towards digital payments, which has affected the income of ATM operators. Experts believe that if this problem of cash supply is not resolved soon, there may be more pressure on ATM services in the future.
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