The US vendor says the ongoing cash supply shortage in India will adversely impact fourth quarter revenue earned from withdrawals on the more than 12,000 ATMs it owns or operates as well as earnings from money transfer remittance payout in India.

The Indian Government's surprise overnight decision to withdraw the large denomination notes from circulation has led to huge queues at banks and cash machines as consumers seek to exchange the worthless notes, which comprised 86% of the country’s total currency. Indian authorities initially anticipated a limited cash supply shortage in the aftermath of the decision, which will see the old notes replaced by a more secure Rs500 note and a new Rs2000 note.

However, three weeks on and long queues can still be seen outside ATMs in major metropolitan centres as new stocks of bills fall short of demand and cash machines run dry.

“The economic situation in India is unfortunate for our business, but it is transitory and we expect to resume normal operations in India soon. In the meantime, our hearts go out to the millions of Indians impacted by the cash shortage who are unable to obtain cash to pay for their bare necessities,” says Michael Brown, Euronet’s chairman and chief executive officer. “I am proud of our teams in India who are doing everything possible to help bring cash to Indian residents across the country.”

He says that business should return to normal in 2017, but in the meantime has revised guidance down to $0.98-$1 per share from earlier projections of $1.07 per share.

The Indian economy accounted for $78.8 million in earnings for the Kansas-based company last year.

Shares in the vendor fell by 5.4% to $70.66 in after-hours trading following the announcement.