De-Monetization: Why Are ATMs Still Out of Service?
If you have been wondering why ATMs are out of services, here’s the answer.
AS per the RBI Circular, it may take a while for the banks to recalibrate their ATMs. Once it’s done, the ATMs will be functional. However, you can withdraw a maximum of Rs. 2,000 per card daily up to 18th of November after which the limit will increase to Rs. 4,000 per day.
Here are some of the reasons why most ATMs are down right now.
Quantum of Money and Logistics Issues
The Rs. 100 notes are very short in supply right now and the ATMs are running out of cash very quickly.
FYI, every ATM machine can only contain 3-4 cassettes to hold and dispense cash, and each of those cassettes must be configured to dispense a particular value. Until the announcement of de-monitization, ATMs cassettes were configured for Rs. 100, Rs. 500 and Rs. 1000 notes.
However, as Rs. 500 and Rs.1000 notes were discontinued, banks must now reconfigure their cassettes to dispense Rs. 50, Rs.100 and Rs. 2000. The banks need time to re-calibrate their ATMs frequently in order to meet the sudden surge in demand of cash.
What Am I Supposed to do Right Now?
Under the current scenario, it’s going to take a couple of weeks for the banks to deal with the logistic issues related to the ATMs. So, it would be wise on your part to use your existing cash judiciously. If possible, use your debit cards/credit cards more often until the situation becomes normal.
Also, since banks have waived the transaction fees until December this year, you need to withdraw as much as you need for the entire month.
How are you dealing with the crisis right now?
Please, let us know in the comments below.