Centre, RBI step in as cash crunch hobbles ATMs across various states

The finance ministry held a meeting with the Reserve Bank of India (RBI), banks, and state government officials on Thursday to take stock of cash availability in automated teller machines (ATMs) after receiving complaints of cash crunch in some states.

Several states are facing cash shortage despite currency flow in the economy going back to the pre-demonetisation level. A recent analysis by the RBI to the finance ministry found that the rate of cash withdrawal was far more than the cash deposits in banks in states such as Andhra Pradesh, Bihar, Karnataka, Maharashtra, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Telangana,