Demonetisation: RBI to set up task force for recalibration of ATMs

The Reserve Bank of India on Monday said that for the re-calibration of all ATMs/Cash, a Task Force will be set up under the Chairmanship of S.S. Mundra, Deputy Governor, RBI.

As per the RBI's notification, the task force will comprise of representatives from the Government of India, Economic Affairs, Department of Financial Services, Ministry of Home Affairs. The force will also comprise representatives from four banks with larget ATM network, viz, State Bank of India, Axis Bank, ICICI Bank and HDFC Bank. 

Apart from them, representatives from National Payments Corporation of India (NPCI), CGM, DCM, DPSS.

"A representative each of ATM OEMs, Managed Service Providers, CIT companies and WLA operators will be invited to the Task Force’s deliberations. The Task Force may also invite others as may be needed", RBI said.

The move came in as it has become necessary to re-calibrate all ATMs/ Cash handling machines to dispense the new design notes following introduction of Mahatma Gandhi (New) Series Banknotes including a new High Denomination (Rs 2000) in new designs. 

As per RBI, re-calibration of ATMs involves multiple agencies – banks, ATM manufacturers, NPCI, Switch Operators, etc. and multiple activities making it a complex operation requiring immense coordination among these agencies.

On Sunday, Ministry of Finance had said that old  currencies of Rs 500 and Rs 1,000 denominations will be accepted for another 10 days at government hospitals, petrol pumps and toll booths.

Following Prime Minister Narendra Modi's announcement of ban on old currencies of higher denomination there was a rush to deposit old currencies which resulted in chaos at bank branches and unending queues at ATMs.

On account of the currency ban announced by Modi on November 8, nearly Rs 3 lakh crore of old notes has been collected by banks up till November 13 and over Rs 50,000 crore has been withdrawn by people from ATMs or bank branches, the Ministry said.