India's LARGEST EVER political poll. Have you participated yet?
  • search

Many ATMs facing problems: What could be the cause?

By Vikas
Subscribe to Oneindia News
For Quick Alerts
Subscribe Now
For Quick Alerts
For Daily Alerts

    Many ATM machines across the country are said to be either out of cash or not working which is causing great inconvenience to people.

    The exact reason behind non-functioning of ATMs is not clear, but reports suggest two possible reasons.

    An ATM machine

    Most ATMs could be shut due to the re-calibration process to accommodate newly issued Rs 200 notes. As of 4 January 2017, the Reserve Bank of India has ordered banks to re-calibrate all 2.2 lakh ATMs across the country to ensure the dispensation of the new, yellow Rs 200 notes. Although the notes were introduced in August 2017, the new Rs 200 notes are available only through cash counters of the banks and not ATMs.

    Another reason, which is purely a speculation, is that it could be part of a push for digital transactions. It is interesting to note that 1,782 ATMs across the country were shut down between May and November 2017. Reports also suggest that there is a decline in the supply of currency from the RBI.

    The cash crunch could also be due to the Financial Resolution and Deposit Insurance (FRDI) Bill, which has created confusion among people during the last couple of months. Many depositors started withdrawing their FDs and other deposits, following rumours that the day was not far-off when the government could start meddling with their deposits.

    Even after demonetisation in November 2016, banks went through a complete overhaul of all ATMs, having had to recalibrate the trays which hold and dispense notes inside the machine to fit the new dimensions of the Rs 500 and Rs 2000 note. This resulted in serpentine queues outside banks and ATMs.

    OneIndia News

    For Breaking News from Oneindia
    Get instant news updates throughout the day.

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more