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
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