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Sumil Vikamsey, Managing Director and CEO – Cash Business, Hitachi Payment Services, mentioned about
10% of the ATMs and money recycling machines (CRMs) managed by Hitachi Payments have been impacted because of the withdrawal of `2,000 forex notes from circulation.
“All these machines have been reconfigured to cease meting out `2,000 forex notes. The CRMs can nonetheless be used to deposit `2,000 forex notes as debit playing cards are KYC compliant and within the identify of the account holder,” he mentioned.
The reconfiguration of ATMs for many banks was performed at a central degree following the Reserve Bank of India’s announcement on May 19 to withdraw them from circulation.
The `2,000 notes account for about 10% of the money in circulation and regularly, the variety of ATMS dispersing these notes have additionally decreased in current months with solely sure ATMs that tended to see excessive worth transactions configured to disburse these notes. According to business estimates about 5% to lower than 10% of all ATMs have been configured to dispense `2,000 notes.
Industry specialists level out that sometimes have 4 cassettes to disburse 4 denominations of forex together with `2,000, `500, `200 and `100. However, 90% of the ATMs have been already configured to disburse solely `500, `200 and `100 notes and the power of `2,000 notes was restricted to about 10% of the ATMs.
Industry watchers mentioned the utilization of such notes at stores had additionally declined in current months. In money pickups from these shops for depositing at banks, nearly 2% to three% of the tended to be in `2,000 notes.
“It doesn’t appear that the withdrawal of those notes can have a big affect as their utilization had gone down significantly they usually appear to be extra of a retailer of worth,” mentioned an govt with a money dealing with firm.
Bankers too have mentioned that they don’t anticipate an excessive amount of rush for the alternate of those notes though financial institution branches are being adequately ready to cope with clients.
As of March-end 2023, `2000 notes in circulation represent `3.62 trillion or 10.8% of notes in circulation as in opposition to `6.73 trillion at its peak in March 2018 when these excessive worth notes accounted for 37.3% of the notes in circulation.
“Unlike November 2016 DeMon episode of in a single day scrapping of then-existing currencies’ authorized standing, the current `2,000 notes will proceed to stay as authorized tender. Thus, this transfer can’t be in comparison with DeMon,” mentioned a observe by Emkay Global Financial Services. An identical transfer was taken in Jan-14, the place the RBI suggested that banknotes issued previous to 2005 can be withdrawn regularly, and the method was performed easily over the stipulated time, it additionally identified.
