In order to make sure that genuine requirement of members of the public for ₹100 denomination banknotes are met, the reserve bank of India on Wednesday said it will conduct a pilot project whereby 10 per cent of ATMs in the country will be solely calibrated to dispense ₹100 banknotes.
The RBI, in a circular, advised banks to configure/calibrate 10 per cent of their ATMs to facilitate this arrangement.
As the method involved in configuring the requisite number of machines is not complex, the banks are required to complete the exercise within 15 days from the date of the circular and report compliance. For this purpose, the rbi said banks are liberal to choose the branches with the sample covering relatively large number of centres/States.
The rbi has asked banks to share their feedback on the pilot when a lapse of 2 months.
This pilot project follows a review conducted by the rbi on the steps taken by banks for installing ATMs dispensing lower denomination banknotes. during this review, the rbi found that only a few banks had taken any initiative in fitting ATMs dispensing lower denomination notes, together with ₹100 denomination banknotes.
“In keeping with the objectives of clean note policy and to ensure that genuine requirement of members of public for ₹100 denomination banknotes are met, the banks ought to increase dispensation of ₹100 banknotes through ATMs which are widely used for distribution of banknotes for retail use,” the run said.
Source: The Hindu