Cash shortage hits ATM transactions
KARIMNAGAR, JUNE 18, 2026: A severe cash shortage across several banks in Telangana state in general and integrated Karimnagar district in particular has triggered widespread inconvenience for farmers, pensioners and daily consumers, forcing them into long queues with no guarantee of withdrawal.
Despite having funds in their accounts, customers are facing a tight cash crunch. In Karimnagar district, crowds begin forming outside bank branches early in the morning. Many residents alleged that after waiting for hours, they were either turned away or handed limited amounts due to currency shortage.
The crisis has severely disrupted rural economies at the crucial start of the Khariff season. Farmers noted that while the government had credited paddy procurement payments into their accounts, the cash remained inaccessible, stalling daily transactions and agricultural payments.
Our paddy payments were credited days ago, but we are making repeated visits to the bank just to withdraw our own money,” said a farmer of Jagtial region. Instead of paying Rs 2 lakh at a time, the banks were providing cash in instalments at the rate of Rs 20,000 during each visit, and the farmer was forced to shell out an additional Rs 1,000 for petrol and other expenses during his regular visit to the bank.
Bank officials attributed the crisis to a limited supply of currency from the central chests. While they assured that normalcy would return once fresh cash arrived, their appeals to shift to digital payments have found little traction in the rural areas, where many remain uncomfortable with online banking.
The desperate farmers are reportedly carrying cheques from one bank to another in search of cash. To manage the chaos, bank employees have resorted to logging cheque numbers and customer contact details to call them back when cash becomes available. Customers seeking withdrawals of Rs 1 lakh or more are facing the steepest hurdles. On the other hand, the ATMs of several commercial banks have become non-functional due to a shortage of cash.
Acknowledging the shortage of cash in the state, a bank manager said that the disbursements were being managed gradually based on available cash flow. He said that the cash shortage was affecting all the banks in the Telangana state. With financial stress mounting, farmers have demanded immediate intervention from the district administration and the banking authorities to restore adequate cash flow during the peak khariff season.
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