RBI orders banks to ensure Rs.200 notes in ATMs

Mumbai, Jan 04: The Reserve Bank of India has ordered banks to recalibrate ATMs to ensure that more numbers of the Rs. 200 denomination note is dispensed to the general public as part of its efforts to step up supply of lower denomination notes.

Two people familiar with the matter said that the banking industry is likely to spend more than Rs 110 crore in implementing the regulator's order.

"RBI has asked banks and ATM manufacturers to ensure that ATMs start dispensing Rs 200 notes as soon as possible, it's a good move as we need lower denomination notes vis-a-vis Rs 2000 notes," said a banker aware of the direction but did not want to be identified. "It could take 5-6 months to fully implement this project."

RBI did not respond to a mail seeking a response on the matter.

The central bank's move comes amidst criticism that the very purpose of demonetization of Rs. 500 and Rs. 1,000 currency notes in 2016 to curb corruption by Prime Minister Narendra Modi is being defeated with the circulation of a huge number of Rs. 2,000 notes.