1. Demonetisation: What is ATM recalibration? What does this mean for the common man?

Demonetisation: What is ATM recalibration? What does this mean for the common man?

12,500 ATMs are reportedly gettng recalibratied each day with an aim to dispense new Rs 500 and Rs 2,000 notes. But it is a big task to recalibrate around 2.5 lakh ATMs in the country.

By: | Published: November 17, 2016 11:10 AM
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12,500 ATMs are reportedly gettng recalibratied each day with an aim to dispense new Rs 500 and Rs 2,000 notes. But it is a big task to recalibrate around 2.5 lakh ATMs in the country, which essentially means that it will take a good amount of time added to the wait for people as many banks have closed the ATMs to complete the process. The instructions on the process of ATM recalibration was decided and provided by a task force lead by Reserve Bank of India Deputy Governer S.S. Mundra. The step wa taken to ease the current banking restrictions and increase the limits on cash withdrawals. Though the government have been taking steps to provide a better way for the supply of cash so that customers have to wait less at ATMs, the closed ATMs have caused more harm than good as more and more people have been gathering in bank baranches.

Union minister for Finance, Arun Jaitley had earlier said that the government have been taking measures to replace old Rs 500 and Rs 1,000 currency notes as soon as possible and that it would take 2-3 weeks for ‘adequate replacement. The reactivation of ATMs could not have started earlier as government believes that it would have affected the demonetistion announcement as the decision would not have been a secret. Recalibration is a process in which technical teams visit ATMs and changes both software and hardware of the machines, and that operation takes up a minimum of three to four hours. Imagine the number of people required to complete the process for the huge number of ATMs in the country. However, the task force has provided a plan maximum people can cover different ATMs according to area and its perimeter. The technichal teams from maintainance companies during the process, have to insert cassettes which are configured according to the thickness of the new series notes.

Also read | Demonetisation: Half of ATMs likely to be recalibrated within 1 week, says a Finance Ministry official

However time this may take, on the flip side, it makes sense, as the ATMs which had been giving Rs 100 notes were running out of cash within a couple of hours. According to a report in The Hindu, banks have been asked to first complete the task in the major 30 cities by the end of November.

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