ATMs short of Rs.100 notes

ATMs short of 100 notes

By SiliconIndia   |   Friday, 26 June 2009, 11:04 Hrs   |    2 Comments
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ATMs short of Rs.100 notes
Bangalore: As Reserve Bank's directive which allows users to withdraw cash from any ATM with his debit card came to effect, there has been a shortage of 100 notes as banks are not able to predict the amount to put in. This has been happening especially with public sector ATMs which suddenly run out of 100 notes, forcing customers to withdraw 500 or 1000. Nowadays, a board displaying 'No 100 notes' at ATM counters has become a common sight.

Due to cash outages caused by higher traffic of non-customers, Banks have been stocking more notes of 500 and 1000. "There is a perceptible increase in ATM withdrawals in the last two months. This might result in shortage of 100 notes in a machine," a senior Andhra Bank official said. On top of that, Central Bank's policy of giving out only fresh notes is also adding to the shortage. While a State Bank of Hyderabad official says that Banks haven't adjusted themselves for the new ATM rule. He also said that the problem of shortage of 100 notes is only in rural areas.

Private Sector Banks are managing the situation much better than the Public sector. An ICICI Bank official said the bank had taken special measures to ensure availability of cash in all denominations in its over 4,500 ATMs. They are uploading one and half times more cash than before.

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Reader's comments(2)
1: If we can stop printing currency and coins, it would be a revolutionary attempt to save our country. This can make India, free of corruption and accelerate our transition towards 'developed country' status.

You might be thinking this as illogical or quite impossible. The same sort of thought process would have happened when ATMs or eBanking started by replacing traditional processes.

Today we are using debit/credit card to purchase online or offline, to transfer money etc. We are quite comfortable with that and more people are going to use this facility in the coming days. So it is achievable and the possible challenge would be to launch digital currency, country wide with special care to cater needs of rural public, illiterate people and people those who are differentially able.
Posted by:Sreekumar J - 26 Jun, 2009
2: Yes I have faced this problem a lot. specially with State Bank of India ATM. But the any ATM rule is a saviour.
Posted by:Pooja - 26 Jun, 2009