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  Business   Economy  07 Apr 2017  RBI may not supply new Rs 200 notes through ATMs

RBI may not supply new Rs 200 notes through ATMs

THE ASIAN AGE
Published : Apr 7, 2017, 12:50 pm IST
Updated : Apr 7, 2017, 2:13 pm IST

RBI does not want to take to tedious task of recalibrating some 2,20,000 ATMs across country, report says.

RBI Governor Urjit Patel.
 RBI Governor Urjit Patel.

Mumbai: The Reserve Bank of India may not make new Rs 200 denomination notes available at automated teller machine or ATM booths, a report published in The Hindustan Times claims.

The central bank has accelerated its efforts for ensuring enough cash supply in system as part of its remonetisation drive started in the backdrop of a severe cash crunch.

 

Central bank may avoid undertaking a tedious task of recalibrating some 2,20,000 ATMs across country, the report added. After Rs 1,000 and Rs 500 notes were banned, RBI introduced new Rs 2,000 notes.

RBI had tough time in tweaking the vast network of ATMs based on the data about new Rs 2,000 notes. HT quoted a senior bank official as saying that supplying new Rs 200 notes through ATMs would come with a herculean task of recalibrating 2,20,000 ATMs.

“The idea is not to disturb the system once again," the official said. After note ban, country's cash supply system witnessed disruption for four long weeks starting November 10 last year.

 

The official added that it was advisable to circulate these notes through the bank branches, "though at present these are just proposals". The proposal to start printing new Rs 200 notes came at RBI's table as cash crunch was still observed in some pockets of the country due to unavailability of lower denomination notes.

“People are still reluctant to take Rs 2,000 and therefore there is still a shortage of currency notes and the need is to have lower denomination notes,” HT quoted the official as saying.

The Central Board of RBI gave its approval to printing of new Rs 200 denomination notes in March. RBI now awaits a green signal from the Modi government as Centre's nod is necessary for printing new notes.

 

Tags: rbi, reserve bank, rs 200 notes, remonetisation, demonetisation, atms, banks, cash supply
Location: India, Maharashtra, Mumbai (Bombay)