New Rs 200 notes to be circulated through banks, not ATMs: Reports

Aadil Ikram Zaki Iqbal
The RBI has proposed to circulate the new Rs 200 banknotes only through bank branches, similar to the way Rs 50 and Rs 10 notes are circulated.

New Delhi, Apr 8: Reserve Bank of India (RBI) may not allow ATMs to dispense new Rs 200 note, that is likely to be introduced after June. If media reports are to be believed, the RBI wants to circulate new Rs 200 currency through banks, not ATMs. The move is aimed at avoiding another chaotic recalibration process similar to the one that followed after the demonetisation of old Rs 500 and Rs 1000 banknotes in November last year.

After the withdrawal of Rs 500 and Rs 1000 currency and introduction of new Rs 500 and Rs 2,000 notes, it is been reported that the RBI is planning to print new Rs 200 banknotes. According to a report of Hindustan Times, the RBI has proposed to circulate the new Rs 200 banknotes only through bank branches, similar to the way Rs 50 and Rs 10 notes are circulated. A senior banking official, while speaking to the newspaper, admitted recalibrating India’s 220,000 machines to enable ATMs for dispensing Rs 200 notes, will take more than a month.

In November, ATMs were reprogrammed to dispense the Rs 2000 notes when Prime Minister Narendra Modi announced demonetisation of old Rs 500 and Rs 1000 notes. Nearly 90 per cent of the 2 lakh ATMs deployed across the country were re-calibrated to dispense the new 500 and 2,000 rupee notes post demonetisation drive.

ATMs have three-four drawers. These drawers are also called cassettes. Banks keep notes in these drawers or cassette. Each cassette can identify a particular denomination currency note given certain unique ‘pointers’. An ATM machine is currently programmed to dispense Rs 2,000, Rs 500 and Rs 100 notes in an appropriate combination, based on the cash available in it. If the RBI wants to circulate Rs 200 through ATMs, they need to reprogram all 2 lakh ATMs deployed across the country.

A report by the Mint said a meeting regarding the introduction of Rs 200 notes was held in March. “Rs 200 currency note is in the pipeline. But, unless it is notified by the central government, making a dye (block), working on security features and printing process of Rs 200 would not take place. So this time, RBI would implement its plan only after the Centre’s notification,” a source told India Today.