Demonetisation effect: Rural India still faces cash shortage

According to RBI data, currency in circulation was Rs 13.12 lakh cr as of March 24

After normalising for a while in the January-March quarter, cash-handling activity has declined by at least 12-15 per cent and is under pressure in April, say cash management companies who blame the situation on a severe cash crunch in the system. Due to this, at least 9-10 per cent automated teller machines (ATMs) in the country remain consistently dry, cash management companies say. 

According to cash-handling companies such as CMS Info Systems and Logicash Solutions, the available cash mainly lies with the bank branches and has not been transferred to ATMs. Also, rural areas are still facing cash shortage. 

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