Why ATM’s Are Facing the Crowd (Download PDF)

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Generally, one ATM has three or four Cash cartridge or cassettes, which identify particular currency notes through pointers. Usually ₹ 100,500 and 1,000 notes were filled in appropriate combination depending on the area (usually two cassettes 100 + one cassette 500 + one cassette 1,000) .

Cash Cartridge

ATM՚s could thus hold maximum ₹ 34,00, 000 but according to the guideline of RBI, an ATM could hold a maximum ₹ 12,00, 000.

It is not necessary to fill every ATM with ₹ 12,00, 000; it depends on the owner bank, which based the decision on factors such as location, population, usage etc.

Ever since demonetization in November 2016, ATM have seen heavy rush. In that case, RBI permits the banks to stock cash up to ₹ 24,00, 000.

Each cassettes of ATM holds 2,500 notes so typical variation, the four cassettes of ATM can hold maximum of 10 lakh and in three cassettes maximum 7.5 lakh can be filled.

After the demonetization, reconfiguration of ATM is becomes priority so ATM can recognize new notes of ₹ 500 and 2000. Currently only 100 and 50 rupees notes (since Nov 11th) are available in ATMs.

Reconfiguration of ATM will take minimum 7 to 10 days and in current situation, it is not possible to close ATM՚s for such long time. If any customer withdraws 1000 rupees ATM, the best it can do today is to dispense 10 notes of ₹ 100, burning through its currency very fast.

About ATMs Background

Automated teller machines (ATM) are an automated 24 × 7 cash withdrawal machine, enabling financial institutions to carry out cash transactions without involvement of a cashier.

ATM Functionality

  • Cash Withdrawal
  • Case Deposit (if facility available)
  • Balance Inquiry
  • Account Transfer
  • Stamp Purchas (if facility available)

How Do ATMs Work?

Generally, ATM has two input and four outputs devices with host processor to connect with customer.

Image Shows ATMs Work

India has approximately 2.20 lakh ATMs across 650 districts and 40,000 employees with 8,800 vans to refill ATM. However, even with employees working extra hours to refill ATMs, currently only 25,000 ATMs are in service.

- Published/Last Modified on: November 14, 2016

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