Waiting for Rs 200 notes? ATMs unlikely to dispense new currency until end of the year

The Reserve Bank of India had issued Rs 200 notes in August, saying that the new currency would be available at every banks after three months of its issuance.  However, now it has been reported that the newly-launched Rs 200 notes could be available at ATMs only by the end of this year. The Times of India talked to some of the ATM operators who told the newspaper that the currency was still not available with them.  

One such ATM operator in NCR manages more than 1 lakh ATMs across the country. NCR Managing Director Navroze Dustur told the TOI that most of the banks have not even requested for ATM recalibration for the new Rs 200 notes. He said NCR has recalibrated some of the ATMs, however, it is the banks which will have to take decision on recalibration not the ATM operators. Due to non-availability of notes there has been a lack of interest on the part of banks to get all their machines recalibrated, the TOI reported.

Recalibrating an ATM means changing the cassettes, or small boxes which hold and dispense cash, as per the dimensions of the currency notes. Each cassette can hold 2,500 notes. The ATM providers will also have to consider the supply of notes to match it with the capacity of an ATM. Presently there are 2.25 lakh ATMs operational across the country, which had been recalibrated during the time of demonetisation to accommodate new Rs 500 and Rs 2000 currency notes.

After the demonetisation, the RBI launched Rs 500 and Rs 2000 notes. However, it was felt that Rs 1000 note or smaller denomination was needed for smooth business transactions.  This year in August, the central bank launched Rs 200 currency note which was expected to be available in ATMs after November this year. Initially, the new currency notes were made available at select RBI offices and bank branches.

In a press statement, the RBI said: "However, the production of these notes is being ramped up by the currency printing presses, and over time as more notes are printed, it will be distributed across the country through the banking channels and will be available for public in adequate quantity."