Fin Min asks banks to ensure cash at all branches, ATMs amid tension

The Department of Financial Services (DFS) has directed the banks to make cash available at all ATMs, branches and customer service points (CSPs) to prevent any disruption in services.

“DFS has told banks to ensure cash in ATMs and branches have to be maintained. Economy has to be kept going and customer service needs to be offered," said A. Manimekhalai, managing director and chief executive officer of Union Bank.

Also read: HDFC Bank cracks down on employees using 'temporary' deposits to inflate numbers

Manimekhalai added that the bank is taking all precautions with regard to cybersecurity of their digital channels. As of 31 March 2025, Union Bank has 8,621 branches and 8,901 ATMs.

A finance ministry official confirmed, “Banks have been advised to prevent any disruption in services and service all the customers needs, including supporting daily transactions using bank branches or ATMs. All requisite arrangement has to be made at the branch level to ensure banking services are maintained at normal levels."

Meanwhile, the country's largest bank State Bank of India (SBI) has instructed all branches and CSPs near the border areas to continue operations, subject to any instructions from the local authorities.

“Till date, we have not heard anything from the local authorities. We have informed all branches to be open until they receive any instructions," said an SBI official.

As of March 2025, SBI has 22,937 branches, 63,791 ATMs and 77,251 CSPs.

Also read: How IndusInd spotted a ₹600 crore error in its microfinance book

Mint is yet to receive any response to emails sent to spokespersons for SBI and the Department of Financial Services.

Based on internal discussions, state-owned Canara Bank has taken some steps in the past week to ensure adequate cash is available to customers.

“Canara Bank has created an emergency response team at the head office which works 24/7. Apart from the bank's managing director and an executive director, general managers and deputy general managers in the information technology department are part of this emergency response team," said Satyanarayana Raju, managing director and chief executive, Canara Bank.

Raju said the team meets daily to take stock of the situation and is monitoring branches and ATMs to ensure that everything is live.

“The bank never kept excess cash in the branches but (these) were shifted to currency chests to get optimum benefit. To ensure that branches do not face difficulty in transporting cash if something comes up all of a sudden, we are parking sufficient cash to last two-three days in the branches alongside adequate security," said Raju.

Also read: RBI’s double-barreled liquidity surge in May to force down lending rates

He added that the bank is also loading ATMs to utilize the full capacity. As of 31 March, the bank had 9,579 ATMs, and 9,849 branches.

On Friday, Moneycontrol reported that the finance ministry has asked major financial institutions such as the RBI, banks and the National Payments Corporation of India to be on high alert and step up cybersecurity measures to protect the country’s financial institutions and digital payment infrastructure.