Cyclone Michaung-induced waterlogging and power cuts in flooded areas in Chennai and neighbouring districts have affected the functioning of ATMs, adding to the woes of people who are unable to make digital payments due to network issues.
Industry officials said things would improve in a week’s time. Digital payment modes have been affected due to network issues in flood-hit regions. Staff at places like petrol bunks and grocery stores are insisting on cash payments. Even at Aavin booths and for electricity bill payments, cash payments are being demanded, Consumer activist T. Sadagopan said.
K. Muthu Kumaran from Avadi said ATMs were not dispensing cash. Another issue was the lack of availability of ₹100-notes at functioning ATMs. According to data on the Reserve Bank of India’s website, 4,560 ATMs have been installed in Chennai at the end of September quarter 2023. There are 1,222 ATMs installed in Chengalpattu, 1,336 in Kancheepuram and 1,536 in Tiruvallur, as per the data.
The main factors that affected ATMs in these regions are waterlogging, power cuts and network unavailability, an official from a leading payments solutions company, which also offers ATM services across India, said.
As water has started to recede, over 55% of the ATMs are currently live across Chennai. However, in a week’s time, over 90% of the ATMs will be live and functioning, the official added.
Managed Service Providers have a contingency plan in place and are working to bring all ATMs live, he noted. “Our team in Chennai has formed a dedicated task force, focusing on the safety of families stuck in critical areas and mobilising ATM route operations at the same time, so that citizens can access money easily. Within 48 hours, our team ensured that 67% of our ATM network became operational. As of today, we have been able to achieve 100% functionality of our routes, which will allow us to ensure that all ATMs in our network are available for transactions...,” said a spokesperson from CMS Info Systems, a company providing logistics and technology solutions to banks, financial institutions, and organised retail and e-commerce firms.
