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More ₹100 notes in ATMs, big relief for citizens

One of the biggest issues faced by citizens after demonetisation was the shortage of ₹100 notes.

Written by Kanishka Singh | New Delhi |
January 22, 2017 7:35:39 pm

 

demonetisation, demonetisation effects, demonetisation impact, cash, ATms, ATm cash, ATm demonetisation, atm recalibration, recalibration of ATMs, ATM queues, narendra Modi, Modi, Pm modi demonetisation, poors demonetisation, people suffering, indian economy, currency, old notes, currency demonetisation, india news, indian express news People standing in an ATM to withdraw cash. (Source: File/Reuters)

One of the biggest issues faced by citizens after demonetisation was the shortage of ₹100 notes. The remonetisation has been excruciatingly slow. But, the situation has now started to ease a bit. ATMs have finally started dispensing ₹100 notes on a frequent basis bringing in much-needed relief to citizens.

A sample check proved the fact that ATMs are in fact dispensing ₹100 notes in several locations. The machines now remain in order for longer periods and with cash in stock. Lines have almost disappeared compared to the chaos after November 8. The condition seems to be normalising. The Reserve Bank of India gave instructions to banks to fill up their ATMs with ₹100 notes in mid December, but the shortage was such that even banks were unable to follow the directives last year.

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After demonetisation was announced, ₹100 notes became precious commodity. Due to the uncertainty about the cash situation in the country, people were neither willing to part with the smaller denomination notes nor willing to deposit them in banks for the notes to return into circulation in a more distributed manner.

As massive amount of liquidity was sucked out of the system on November 8, citizens scurried to get their hands on as much currency (new or old legal tender) as they could. The quick fire solution was to flood the system with ₹2,000 notes, which didn’t help much as transactions were often declined as people did not have smaller notes to give in return for transactions.

The shortage gave merchants the chance to ask customers to overspend arguing shortage of change. In many places, people were even unable to buy items like groceries or medicines as shopkeepers turned away people coming with the new currency notes.

It seems, the pleas of citizens are now being answered as they do not have to stand in bank queues to get their hands on the more convenient to use ₹100 currency notes. It took the RBI over two months to reach this situation, which is better than before though not optimal. Now the central bank will have to prove its mettle by normalising the situation across the country.

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First published on: 22-01-2017 at 07:35:39 pm
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