July 23: The Reserve Bank of India (RBI) launched the new Rs 100 note last week, but it might still take some time before we get the lavender-colored note from Automated Teller Machines of banks. The difference in dimension has now raised a big challenge for the banking industry both in terms of time and money.
The new banknote measures 66 mm x 142 mm, significantly smaller than the existing 100 notes that measures 73 mm x 157 mm. This major difference will force banks to recalibrate the ATMs to get the new notes filled, and the whole exercise can take up to a year.
That’s not it, the entire process also would cost big as around Rs 1 billion will have to be spent to get the entire 240,000-odd ATMs in the country recalibrated. Hitachi Payment Services managing director Loney Antony opines that the process could take further time and cost more if not managed well.
Additionally, the cost of carrying cash for ATM operators is also expected to rise due to the variation in dimension of the Rs 100 note. Cash carrying capacity of ATMs are expected to come down due to allocation of only two cassettes for higher denomination notes, and this could also possibly make way for cash crunch situations across ATMs.
The introduction of new note is also said to have been launched without informing the ATM players in the country. It needs to be seen whether the lack of awareness for a recalibration would be causing an extra delay in getting the machines recalibrated.
The new banknote is the fifth to be issued by RBI after demonetization. The production of the new notes has already begun in Devas, while other mints will soon be starting the production of the new note.