Banks and ATM providers are likely to face major challenges in meeting the cash requirements of the common public in the afternath of the Government’s move to issue new series of notes against the earlier Rs 500 and Rs 1000 notes that have been taken out of circulation to check the black money menace.
Leading ATM deployer, NCR Corporation, feels that there are various logistical issues that could be face by the financial services providers in the immediate aftermath of the Narendra Modi government’s decision to issue new Rs 500 and Rs 2000 denomication currency against the earlier Rs 500 and Rs 1000 series.
“There will be several challenges. A clear picture will emerge in a couple of days. We will come to know the Reserve Bank of India’s readiness in supplying new Rs 500 notes and small denomicaion notes to meet the requirement of the public,” Navroze Dastur, Managing Director, NCR Corporation, India & South Asia, told FeMoney.
NCR Corporation’s global managed services center at Mumbai remotely manages over 20,000 ATMs. NCR has also deployed Cheque Truncation (CTS) Project for the Reserve Bank of India. NCR systems enable 550 million transactions daily.
Dastur pointed out that the transition would require visit to each ATM by banks and dealing with companies that manage transportation of cash. “There are around 2.2 lakh ATMs in the country. Providers have to visit each and every one of them and ensure that they are dispensing Rs 100 notes and the new notes. Also, earlier Rs 500 and Rs 1000 notes have to be pulled out of the ATMs,” Dastur said.
He pointed out that this involved new dealings with cash-in-transit companies. “The process of handing over of the demonetised cash pulled out of ATMs will have to be handled. Also there are issues at the switch level that needs to be addressed” Dastur said.