Demonetisation: New notes are of Rs 2000, so villages show dip in ATM withdrawals

As of Monday, over 82,000 ATMs that account for 40 per cent of the total cash-vending machines have been re-calibrated .

Written by Khushboo Narayan | Mumbai | Updated: November 23, 2016 1:22 pm
rs 500 ban , rs 1000 ban, demonetisation, atm closed, new notes, atm machines, 2000 notes, Fidelity Information Services, atm withdrawal, indian express news, india news, banking A brand new Rs 2000 currency note. (Source: Express Photo by Arul Horizon)

CASH WITHDRAWALS through ATMs in rural areas have dipped, especially in cash-vending machines that have been recalibrated and loaded with the new currency notes of Rs 2,000.

“In rural areas, especially in the Northeast, our ATMs that have been recalibrated and fully loaded with the new Rs 2,000 currency have seen a dip in transactions as the ticket size in such areas are small and the people there don’t want to withdraw Rs 2,000 notes,” said Ramaswamy Venkatachalam, managing director, Fidelity Information Services (FIS), a banking and payments technology provider.

WATCH VIDEO: Demonetisation: Relief For Common Man: Find Out More

Venkatachalam said that in rural areas, people typically have small balances in their accounts and even the ATM withdrawals are mostly of under Rs 1,000. Due to the hoarding of Rs 100 notes and short supply of the new Rs 500 notes, most of the ATMs have a higher number of Rs 2,000 notes, which may not be of much use to people in rural areas, he said.

“The situation is expected to improve once the supply of the new Rs 500 notes stabilises,” said Venkatachalam.

As of Monday, over 82,000 ATMs that account for 40 per cent of the total cash-vending machines have been re-calibrated since the RBI constituted a task force under Deputy Governor S S Mundra to oversee the recalibration of ATM machines.

“The recalibration of ATMs is on track. We are being able to recalibrate over 13,000 ATMs a day and even the availability of the Rs 500 and Rs 2,000 currency notes has increased,” said Rituraj Sinha, president, Cash Logistics Association of India (CLAI).

Sinha said the task of recalibration of ATMs is expected to be complete in the next eight to ten days.

Venkatachalam said urban centres have seen more ATM machines being recalibrated as the density of cash-vending machines in these areas are more — there are over 2.2 lakh ATMs in the country, spread over 650 districts.

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  1. B
    Bhatti
    Nov 23, 2016 at 3:58 am
    Rs. 2000 will soon bring the downfall.
    Reply
    1. R
      Raj
      Nov 23, 2016 at 5:25 am
      Joker
      Reply
      1. J
        Jim
        Nov 23, 2016 at 3:41 am
        Dometisation had failed before it began. The grade 5 fail Feku cannot deliver anything.
        Reply
        1. D
          dd
          Nov 23, 2016 at 3:50 am
          People are using PayTM other way of buying. Villegeres are smarter than writer.
          Reply
          1. A
            anil
            Nov 23, 2016 at 10:37 am
            Cancer of black money roots very deeply . It is touching general public also. before commenting pl think where all the old 100,50 ,20 10 rupees note gone. Rural india basically transact with these denomination earlier. everybody lineup thinking their hard earn money will be useless by this move (because somebody told them). Also, many person things it bad because their income tax declaration not covers all their case.lt;br/gt;In India, lots of NGOs are on run. Why not these NGOs help government and people in distress.
            Reply
            1. S
              Sreenivasan
              Nov 23, 2016 at 9:38 am
              There was no practically any purpose in stopping the public from using their old notes till the government was ready with sufficient replacements. A wrong decision of government has affected almost all the poor and lower middle cl people of India. Those who can live with their card money and cheques are let off the problems while the poor people suffer because of the half cooked ideas of the government.
              Reply
              1. M
                Mangu Yadav
                Nov 23, 2016 at 1:32 am
                Peopel finding difficult to detect which Rs. 2000 is real which is fake because of spelling error and other defects.
                Reply
                1. M
                  Mohammed
                  Nov 23, 2016 at 11:40 am
                  I am not into politics. Did any one call for collecting lower denomination notes ? it happens naturally when there is no higher denomination notes available. how else can people store money for expenses ? Usually I store few 1000 or 500 rupees notes in my home for daily expenses, now instead of that I have around 5000 rupees in 100 rupees notes. Even though I try to use debit card wherever I can, I need this money for daily use where cards are not accepted. I cannot wander around the town with a 2000 rupee note which small vendors are not accepting.
                  Reply
                  1. M
                    Mohammed
                    Nov 23, 2016 at 11:51 am
                    such a stupid reply. you think all those are against modi are anti india. at least try to answer logically to what he said.
                    Reply
                    1. M
                      Mohammed
                      Nov 23, 2016 at 11:17 am
                      when higher value notes are demonetized and newer notes are not sufficient, then people store money in lower value notes. That is reason 100, 50, 20, 10 are out of market.
                      Reply
                      1. V
                        Vihari Naidu
                        Nov 23, 2016 at 2:45 am
                        Example of a Tughlaq decision. Print smaller denomination notes first.
                        Reply
                        1. V
                          Vihari Naidu
                          Nov 23, 2016 at 4:20 am
                          Stop sponsoring a Chinese company you anti national.
                          Reply
                          1. V
                            Vihari Naidu
                            Nov 23, 2016 at 4:22 am
                            Tughlaq thought that common man would use Rs.2000 to buy tea after the economy and rupee collapses owing to this excellent decision.
                            Reply
                            1. B
                              Babu
                              Nov 23, 2016 at 9:26 am
                              Government should let citizens re-use their old 500 notes. These days 500 notes are not High Value Denominations. It buys so little.lt;br/gt;lt;br/gt;Demonetizations should be done gradually. Government must stop it now, before futher damage to jobs and economy is done.lt;br/gt;lt;br/gt;Purpose was good, but it was done hastily. This is will bring recession in India, when the w world economic cycle is also in a precarious situation.lt;br/gt;lt;br/gt;Let people re-use their old 500 notes notes immediately. All the present problems will be solved, before futher damage. Then gradually do demonetization. If in one sitting, a doctor does surgery on the kidneys, lungs, brain and heart, the patient will surely die. Do surgery on kidneys, then let patient recuperate. Then after some time do surgery on lungs and again let patient recuperate. Then do heart surgery and give time to patient to recuperate.lt;br/gt;lt;br/gt;Gradual demonetization and economic reform will save Indian economy and its citizens. Patience is virtue. Cash plays a huge part in Indian economy and jobs for millions of Indian youths.lt;br/gt;lt;br/gt;Therefore, government should let citizens re-use their old 500 notes before Indian economy and lives of citizens turn up-side down in the near future.lt;br/gt;lt;br/gt;Jai Bharat!
                              Reply
                              1. C
                                Chellam
                                Nov 23, 2016 at 6:52 am
                                Use of the Reserve Bank's illegal notes, legally held by low income people, is slowly increasing in day-to-day transactions in life-saving and other basic and emergency human needs. If this continues, soon the RBI will have 2 sets of currencies - one (Rs. 2000 notes) LEGAL BLACK MONEY, and the other (Rs. 1000 and Rs. 500) ILLEGAL WHITE MONEY. Wonderful governance!!
                                Reply
                                1. S
                                  sk
                                  Nov 23, 2016 at 9:02 am
                                  Many shops in my city are now accepting 500 and 1000 notes. Without 1000 note, it would be difficult to get change of 2000 note.
                                  Reply
                                  1. S
                                    Satya Bulusu
                                    Nov 23, 2016 at 5:53 am
                                    Modi ji, lt;br/gt;lt;br/gt;Please provide essential commodities to needy free of cost through state and and union territory government's ration shops for some time as normal working of poor has been disrupted and currently poor are being emplo only for standing in que to withdraw 2000 rupee note.
                                    Reply
                                    1. S
                                      Subodh Pandit
                                      Nov 23, 2016 at 3:38 am
                                      Modi bin tughlaq is for pro poor.Earlier poor people used to have 500and1000 notes.Now they will keep 2000 notes in his pocket so ultimately they want to increase the standard of poor people.
                                      Reply
                                      1. S
                                        SUMAN MAITRA
                                        Nov 23, 2016 at 1:19 am
                                        One should recalibrate our views along with recalibration of ATM machines.also. Why not it is seen as, 'queues in front of banks and ATMs have shorter' and ' Govt, have successfully able to overcome the problems of demonetization within fortnight' . Just change your views (values) and be a cheerleader of nationalistic fury.!
                                        Reply
                                        1. T
                                          Tiwari
                                          Nov 23, 2016 at 4:41 am
                                          The new Rs.2000 Note will buy more votes in upcoming UP election.
                                          Reply
                                          1. T
                                            True Patriot
                                            Nov 23, 2016 at 11:23 am
                                            You are talking non sense. Please read the news where Kejri and his likes are collecting all those lower denomination by collecting directly from bus collections and other similar businesses to create problem to common man so that they can win. W country (I mean try Indians) are behind Modi. Look at the good things that are happening. Your people have stopped pelting stones in Kashmir or burning businesses and buses. We are all behind modi and your corrupt leaders will be put in their places soon.lt;br/gt;lt;br/gt;Jai Modilt;br/gt;Jai Bharath
                                            Reply
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