22,500 ATMs to be re-calibrated by Nov 17, no plan to introduce new Rs 1,000 note: FM

22,500 ATMs to be re-calibrated by Nov 17, no plan to introduce new Rs 1,000 note: FM
Representational Image. Courtesy: Mohit Mehta

Union Finance Minister Arun Jaitley on Thursday said that 22,500 ATMs would be re-calibrated by the end of the day and ended speculation surrounding the introduction of new Rs 1,000 notes.

The decision to demonetize Rs 500 and Rs 1,000 notes made approximately 86 percent of the existing currency defunct from November 9.

The notes were replaced by new Rs 500 and Rs 2,000 notes, which were subsequently distributed to banks by the Reserve Bank of India. In addition, several ATMs were being re-calibrated to allow them to dispense new notes.

Meanwhile, there was talk about the government introducing new Rs 1,000 notes. However, Jaitley said “Rs 1,000 notes will not be reintroduced for now.”

Jaitley also highlighted the government’s latest measures amid demonetization.

Economic Affairs Secretary Shaktikanta Das, while speaking to the media, said that the exchange limit for notes would be cut to Rs 2,000 from Rs 4,500 currently, effective November 18. Jaitley said that the move was to stop the misuse of funds.

The government also allowed for families that had an upcoming wedding to withdraw Rs 2.5 lakh from the bank account of one family member, a move that would be a huge relief for the common man, Jaitley said.

He also added that nearly 22,500 ATMs would be re-calibrated on Thursday to dispense cash effectively. There are over 2 lakh ATMs in the country.

The government increased the daily limit of cash withdrawals from ATMs to Rs 2,400 on Tuesday, provided the money was being withdrawn from re-calibrated ATMs.

Whether the re-calibrated ATMs help reduce queues and improve overall cash flow will be clear over the weekend.

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