While the country spent an entire day without Automated Teller Machines (ATMs) on Wednesday, people would be able to withdraw only Rs 100 notes for the next few days. Though most of the ATMs would be operational from Thursday evening, experts say that there is a high chance that the circulation of cash would be low throughout the country. In his conversation with The Asian Age, Navroze Dastur, managing director (India and South Asia), NCR Corporation India Pvt Ltd — a company that services over 68 per cent of the ATMs in the country — explained that there could be disruptions in services for the initial few days.
“After the announcement that Rs 500 and Rs 1,000 notes would be discontinued, the whole ecosystem of banks and service providers have a lot to do to meet the challenges. The ATMs will provide people with only Rs 100 notes for a few days, which will gradually be lifted after the new Rs 2,000 notes are made available.
There could be disruptions in ATM services due to the shortage of circulation of notes. Notes of Rs 500 and Rs 1,000 denominations contribute around 86 per cent of the country’s cash transaction, and hence the banks would have to make Rs 100 notes (readily) available, as any shortage would directly inconvenience people. There are 2.2 lakh ATMs in the country, in which changes would have to be physically made.”
Though people are restricted to withdrawing Rs 2,000 per day for the next 72 hours, the banks and the other service providers would not only have to make cash available for people but would also have to pick up the cash from the machines and get them back to the bank branches. Overnight withdrawal and loading of cash isn’t possible and, hence, for a few days, even after Rs 2,000 notes are made available, people might have to still face money shortage issues.”
