Mega Drive To Replace Rs 2000 Notes With Rs 500 Notes In ATMs: You Will No Longer Find Rs 2000 Notes!
Dailyhunt
February
27, 2020
Mega Drive To Replace Rs 2000 Notes With Rs 500 Notes In
ATMs: You Will No Longer Find Rs 2000 Notes!
As per the reports,
the Rs 2,000 notes may reportedly be taken out of circulation and efforts are
underway to recalibrate over 240,000 automated teller machines (ATMs) to
replace the currency note with those of Rs 500 denomination.
How Did This Happen?
Basically, banks are
recalibrating ATMs to replace high-value Rs 2,000 notes with Rs 500 notes.
Although there is no
official confirmation from the Reserve Bank of India (RBI) or other
authorities, it is assumed that this could be part of the strategy of the
central bank to keep a tab on the total amount of high-value currency in
circulation.
According to the sources,
the largest denomination currency will remain legal tender, but would be
gradually phased out of public circulation, told the paper.
How Will It Work?
Basically, ATMs have
four cassettes (slots) for notes, each fitted for a particular denomination say
Rs 100, Rs 200, Rs 500 and Rs 2,000, carrying 2,300-2,600 pieces.
The recalibration
exercise would mainly entail the exchange of the Rs 2,000 cassette with Rs 500
ones.
According to the
report, Instead banks are stashing the Rs 2,000 notes in their currency chests
- which go into the Reserve Bank of India's (RBI) vaults.
So out of the four
cassettes within ATMs, three will have Rs 500 notes, and the fourth will be
filled with Rs 100 or Rs 200 notes.
The process is
supposed to be completed within a year.
'Till boxes are being
slowly rebooted', customers need not panic as the notes will continue to be
legal tender, Sources informed.
Why Would This
Happen?
This move of removing
Rs 2000 note from ATMs is supposed to benefit banks and white-label ATM (WLA)
deployers as they earn Rs 15 per swipe and lower denominations would mean
increased transactions for withdrawal of larger sums.
WLA basically allows
private non-bank companies to institute and operate their own brand of ATMs in
the country.
Indian Bank had said
last week that it will no longer keep Rs 2,000 notes in its ATMs, citing public
inconvenience, who found it hard to exchange the notes.
While the decision
will come into effect on March 1, till then the bank's branches will continue
to offer Rs 2000 notes.
But lower
denominations would also mean that banks would have to undertake more cash van
trips to load ATMs and swipe pulls above Rs 10,000 are few.
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