Demonetisation: RBI wants to circulate new Rs 200 notes through banks, not ATMs
The Reserve Bank of India (RBI) is likely to decide against circulating proposed new Rs 200 banknotes through ATMs to avoid another chaotic recalibration process similar to the one that followed the recall of high-value currency last November.
The central bank wants to circulate the new banknotes only through bank branches, similar to the way Rs 50 and Rs 10 notes are circulated. The RBI board in March cleared a proposal to introduce Rs 200 notes to plug the paucity of lower denominations. The mints are likely to start printing the new notes from June.
A senior banking official – who refused to be quoted because he isn’t authorised to talk to media – said dispensing new currency notes through ATMs would mean recalibrating India’s 220,000 machines, an exercise that will take more than a month.
These ATMs were just reprogrammed to dispense the Rs 2000 notes introduced on November 9, a period that saw snaking queues outside machines and millions of people unable to withdraw cash immediately.
