Rs 100 note: Recalibration of ATMs to take months, Rs 100 cr

Tribune News Service

New Delhi, July 20

ATM operators on Friday said the dimensions of the new lavender coloured Rs 100 note would require recalibration of 2.4 lakh ATMs across the country and cost over Rs 100 crore, stretching the entire process to several months.

They said since the recalibration of the machines for the new Rs 200 note was still underway, this could take even more time. In addition, they wondered how the calibration would be done since the old and new Rs 100 notes both would be in circulation.

ATM operators said it was important to maintain circulation of low denomination currency through banks. “As per RBI, the newly designed Rs 100 note will be in circulation through banking channels first. Their printing and supply will gradually increase. It is important to have sufficient supply of Rs 100 and Rs 200 notes to ensure there is enough lower denomination currency in circulation for ease of transactions,” said Loney Antony, Managing Director, Hitachi Payment Services.

ATM operators have warned there could be an imbalance in the supply of new currency. “Since it will be difficult to recalibrate all ATMs till the government withdraws all older notes, the supply would be impacted, especially in the hinterland” said Radha Rama Dorai, MD, ATM & Allied Services, FIS. 

“It would be prudent to let banks and service providers decide when to recalibrate the ATMs for the new currency note, depending on the ‘supply-withdrawal’ situation in each state over the next few quarters”, he said.