ATMs being recalibrated to fit more Rs. 500, Rs. 200 and Rs. 100 notes
New Delhi: After introducing Rs. 2,000 currency notes post-demonetisation in 2016, the high-value note seems to have lost its sheen in three years.
As part of stopping the use of Rs. 2,000 notes, several banks have initiated the process to recalibrate their ATMs in a bid to completely replace the notes with low denomination notes, said reports. Banks are recalibrating ATMs to replace high-value Rs. 2,000 notes with Rs. 500 notes. Though there is no official confirmation from the Reserve Bank of India (RBI) or other authorities, it is assumed that this could be part of the strategy of the Central Bank to keep a tab on the total amount of high-value currency in circulation.
Chests which hold Rs. 2,000 notes in ATMs will be replaced with notes of Rs. 100 or Rs. 200 denominations. Out of the four cassettes within ATMs, three will have Rs. 500 notes and the fourth will be filled with Rs. 100 or Rs. 200 notes. Many ATMs have already replaced cassettes holding Rs. 2,000 notes, while many are in the process to complete it within a year’s time, reports said.
As per bank officials, the highest-value currency will remain a legal tender, but it will gradually be phased out of circulation. Efforts are underway to recalibrate about 2,40,000 ATMs to replace Rs. 2,000 notes with Rs. 500 notes.
Early this month, top public sector banks issued instructions to its senior officials to restrict the circulation of Rs. 2,000 currency notes. The officials were also asked not to create panic among customers. They were asked to accept the notes from bank customers.
In October last year, the RBI had informed that it had not printed a single bank note of Rs. 2,000 denomination in Fiscal Year (FY)-20 as it had stopped the printing of the high-value currency temporarily on security grounds.
This post was published on February 28, 2020 6:42 pm