In a move to bring more number of lower denomination notes such as Rs.200 and Rs.10 in circulation, the Reserve Bank of India (RBI) has reportedly instructed banks to recalibrate their existing ATMs to dispense the notes at the earliest possible.
According to the sources, recalibration of ATMs includes installing spaces to adjust the size of the currency notes.
With India having more than 2.2 lakh ATMs, the whole exercise of upgrading the existing ATMs is estimated to cost approximately Rs.110 crore, with an average recalibration cost of Rs.5,000 per ATM. If everything goes as per plan, ATMs will be ready to dispense the notes in next 5-6 months.
Ever since the central government seized the circulation of Rs.500 and Rs.1000 notes, shortage of lower denomination notes has been a constant problem faced by the common public. Even though the RBI released 16.96 billion Rs.500 notes and 3.6 billion Rs.2,000 notes to curb the situation the availability of low denomination notes is still being criticised.
To curb the situation, the RBI stopped the printing of Rs.2,000 notes in July last year and released Rs.200 denomination banknotes with a bright yellow colour base, bearing the signature of Urjit Patel in August 2017.
Though Rs.200 notes are currently in circulation with the banks issuing them to the general public, they are not being dispensed through ATMs due to calibration issues. With the size of the notes slightly smaller than the existing Rs.500 notes, banks need to recalibrate their ATMs once again to dispense the notes.
New Rs.10 notes
According to other sources, the Apex bank is also planning to release new Rs.10 denomination notes soon. The new notes are reportedly in chocolate brown colour and will have the image of Konark Sun Temple. The RBI printed about 1 billion Rs.10 notes so far.
RBI may reduce the maximum cash withdrawal amount from ATMs
Since the note ban in 2016, the currency in circulation has gone to 95% of the currency circulation during the pre-demonetisation period. By the end of September 2017, about Rs.2.44 lakh crore worth cash was withdrawn from the ATMs compared to Rs.2.22 lakh crore in September 2016.
The increased volume of ATM withdrawals can be attributed to the availability of high denomination notes such as Rs.2,000 in ATMs. To take control of the situation, the RBI is reportedly planning to reduce the average ticket size of withdrawal from the ATMs, according to the sources.
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