Rs 1 billion needed to recalibrate 240,000 DAB for new notes of Rs 100

The new 100 rupee bills will require a recalibration of 240,000 ATMs across the country, and the process will cost the industry about 1 billion rupees and will take more than a year, according to the operators. ATMs

The Bank of India (RBI) announced Thursday that it would soon publish 100 lavender-colored rupee notes bearing the signature of Governor Urjit Patel. The dimensions of the new banknote, according to the RBI notification, would be 66 mm x 142 mm, significantly smaller than the existing one, which measures 73 mm x 157 mm.

"We believe that the recalibration exercise for the new Rs 100 notes could cost more than 1 billion rupees and take 12 months," said Loney Antony, general manager of Hitachi Payment Services, adding that the process could take longer if it was not well managed.

A representative of the Confederation of ATM industry ATM readers were not consulted on the move and they received the news via the media platforms

This is the fifth new size of banknote issued by the central bank since demonetization in November 2016, and different sizes of both R 200 and Rs 2,000. new notes have already begun in Devas and will also begin in other currencies, "said a senior government official.

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the dimensions of the old and the new Rs 100 could pose a serious problem.

"There are four cbadettes in each ATM and the different size of the Rs 100 note means that two cbadettes will be used for a single denomination, leaving only two cbadettes for the highest denomination notes. ATMs' ability to pay, "said Sanjeev Patel, managing director of Tata Communications Payment Solutions, adding that this would not only increase the cost of shipping money for ATM operators. but could also cause a cash crisis.

Having learned from previous experiences of cash shortage, the RBI, after consulting with the government, deploy the news, smaller Rs 100 notes. "The pace of deployment depends of demand for 100 rupee notes in various parts of the country, and it is one of the most requested denominations. It also depends on the old Rs 100 notes, which come back to the RBI chests. Many of these notes will be put back into circulation. We do not want to turn them off until there are enough new notes in circulation, "said one official, adding that recalibration of ATMs would be a slow and step-by-step process. [19659002] a shortage of liquidity if the provision of new notes does not match the number of recalibrated cbadettes.

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"It There is a risk of imbalance between the supply of new notes and the withdrawal of old ones, especially in the hinterland. If the offer of the new currency is unable to fill the void created by the withdrawal of the old currency, the exemption of 100 rupees banknotes by ATMs will be affected until the imbalance exists, "said Radha Rama Dorai, general manager, ATM and related services, FIS, a payment service provider.

The RBI began slowly on new Rs 200 notes and increased production in recent months due to demand, and the same process would be followed for new Rs 100 notes, said one official. The reasons for the financial crisis in April were the conversion of 2,000 Rs cbadettes for new Rs 200 bills. "The provision of Rs 200 banknotes is not enough, while some ATM operators have not recalibrated their cbadettes, those that have recalibrated suffer from empty cbadettes, "said a GAB operator

The Challenges Ahead

• Recalibration could take more than a year

• the old Rs 100 bills are the main question

• This could lead to a shortage of liquidity, due to the reduced capacity of ATMs to keep money

• Learning from previous experiences of cash shortage, the government aims to facilitate the transition to circulation until new requests are satisfied