The Central government and the Reserve Bank of India have reportedly told banks across the country to calibrate the ATMs in a "phased" manner in order to dispense Rs 200 notes.
A senior Finance Ministry official, speaking to Business Standard, said that a fifth of the country's 2,21,000 ATMs have been reconfigured.
Banks had identified about 90,000 ATMs to be recalibrated, and 48,000 have been to dispense Rs 200 notes. However, with the increase in printing of Rs 500 notes, banks have been told to recalibrate ATMs in a phased manner, so that people don’t face inconvenience in withdrawing money.Finance Ministry official to Business Standard
Notes of Rs 200 denomination was introduced in August 2017, almost nine months after the Narendra Modi government demonetised old Rs 1,000 and Rs 500 currency notes. While about 2 lakh ATMs can reportedly disperse Rs 500 notes, ATMs are being recalibrated to accommodate the new Rs 200 notes.
The RBI had earlier said that it was raising the circulation of Rs 200 notes to "ensure balance" in the denomination-mix of currency notes made available to the public.
“The shortage might be felt in some pockets, largely due to logistical issues of replenishing ATMs frequently and the recalibration of ATMs being still underway. The RBI is monitoring these aspects,” the central bank had said earlier, reported Business Standard.
Early in April this year, several ATMs reported non-availability of cash in ATMs across several states, including poll-bound Karnataka, Andhra Pradesh, Telangana, Uttar Pradesh, Madhya Pradesh, and Maharashtra.
The Reserve Bank of India issued a circular clarifying that there is no currency shortage. It said there is sufficient cash in the RBI vaults and currency chests and printing of the notes has been ramped up.
The shortage may be felt in some pockets largely due to logistical issues of replenishing ATMs frequently and with the re-calibration of ATMs still underway. RBI is closely monitoring both these aspects.Reserve Bank of India statement
(With inputs from Business Standard)
(The Quint is now on WhatsApp. To receive handpicked stories on topics you care about, subscribe to our WhatsApp services. Just go to TheQuint.com/WhatsApp and hit send)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)