How much will recalibrating ATMs for new Rs.100 notes cost?
What's the story
ATM operators have said Rs. 100 crore is required to recalibrate ATMs to make them ready for the new Rs. 100 notes, which RBI announced a few days ago.
Along with the cost, this process might further aggravate the problems of these operators as they are just finishing recalibration of ATMs to dispense the recently-introduced Rs. 200 notes.
Further, the recalibration process may take 12 months.
The process
2.4 lakh ATMs of India need to be recalibrated
India has around 2.4 lakh ATMs and all of them would need to be recalibrated.
Notably, RBI also said the old Rs. 100 notes' circulation would continue. This will make the process even more problematic.
"The continuity of old notes, introduction of new notes through the ATM channel and their availability will determine whether to recalibrate or not," said V Balasubramanian, President of FSS.
The issues
Operators feel withdrawal of Rs. 100 notes might suffer
Managing director for ATM and allied services for FIS, Radha Rama Dorai, explained that if new currency fails to fill the gap of withdrawal of old ones, the dispensation of Rs. 100 notes will suffer.
Another operator Loney Antony said recalibration of ATMs for new Rs. 200 notes aren't complete, and unless proper planning is done, a repeat of the process may take longer.
Details
Another expert tells industry is already struggling
The introduction of indigenous notes is undoubtedly a proud moment, said Euronet Services' managing director Himanshu Pujara but "the change in dimensions will make dissemination difficult as it will not be available through the ATM channel."
It will cost the already struggling industry, he added.
The new notes have a dimension of 66 mm x 142 mm, smaller than the existing Rs. 100 notes.
New notes
The new Rs. 100 notes will have lavender base color
These notes are a part of the new Mahatma Gandhi series and their base color will be lavender. They will have a motif of 'RANI KI VAV' on the back side to show the country's rich heritage.
The printing has started in the printing press in Dewas.
The new Rs. 100 notes will have several micro-security features which will be visible under ultraviolet light.