The pile of shredded cash was discovered when technicians were asked to fix the broken cash machine by the State Bank of India.
Upon opening the ATM located in Assam's Tinsukia district, they discovered £13,000 (Rs 12 lakh) had been destroyed.
According to the Indian Express, bank officials claimed that the notes were eaten by rats.
Yes! The rat did a fine job of making a very expensive nest worth 12 lakhs pic.twitter.com/SglTeV1Xum— Karma Paljor (@Karma_Paljor) June 18, 2018
The ATM had been lying vacant since May 20 and was only checked for repairs on June 11.
Global Business Solutions, the company that runs the ATM allegedly filled the ATMN with £32,340 (Rs 29 Lakh) on May 19.
SBI were able to retrieve £18,958 (Rs 17 lakh) from the compromised ATM, a bank official told a local news channel on Monday morning.
However, many people have expressed doubts over what happened to the money inside the cash machine.
The government lender has lodged an FIR with Tinsukia police to probe the incident.