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  • Category: Miscellaneous

    ATM's must serve even small denominations too.

    We all know that after the introduction of ATM services by every bank, the people have stopped going to bank, stand in queue , to withdraw their own money for hours together. Now we can get access to cash at bank 24 hours and we can draw money any time any day. But some ATM counters are serving with only 500 denomination notes. They are not vending 100 rupees. What I suggest that every bank must be ready to serve with 1000. 500, 100, 50 , 20 notes so that small change problems at the shops can be taken care off. Like wise even coins must be available through ATM centers. Any takers to this suggestion ?
  • #578196
    I support the suggestion that every bank must be ready to serve with 1000. 500, 100, 50 , 20 notes but not for coin.To result it into realty we must contact to banks and tell about the ATMs filling with small denominations of notes.Further we can write to RBI and finance ministry about this matter.
    'Education is a lifelong process, keep on learning new things'

  • #578199
    The ATM machines have 2 to 4 boxes called cassettes for storage of bank notes. Depending upon the cash withdrawal pattern of the locality, the banks choose the amount and denomination of cash to be loaded in the ATM machines. The system of loading the cash and denomination of the notes is not uniform across India.

    Presently, the customers get banknotes in the denominations of Rs 100, Rs 500 and Rs 1000 from the ATMs. It is not correct to say that the ATM machines provide only bank notes of denomination Rs. 500. However, the Reserve Bank of India has already directed all the banks to introduce Rs 50 notes in the ATM machines and according to media reports the State Bank of India ATM in Raipur had started vending out Rs 50 notes in the year 2015.

    Loading ATM machines with the smaller denomination will increase the cost of banks as the bank notes will have to be loaded more frequently.

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  • #578201
    It is a good expectation and wish. I also found a few times quite difficult to get small denomination notes and had to go to the bank and exchange some of the big denomination with small denomination ones. But the people at cash counter do not relish the exchanging business as they feel it is a bit risky for them and interference in their work. It is from personal rapport and relationship that we get that done.

    But even the counters at bank are also now like that. yesterday when I withdrew money, I got only 1000 s and 500s only. The crowd at the other cash counter discouraged me to try for exchange and I came out with big stuff notes.
    Filling ATMs with small denomination may have practical problems to banks or money supplying agencies. Moreover only some very small percentage of people would badly need more small denominations. Otherwise they manage these with the local shopkeeper etc.
    P.S: After posting this response only I saw above post by Kailash Kumar. That has more relevant details in this regard.

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  • #578204
    This is true, what Mr. Mohan said. Whenever people go to debit more than Rs.500 and in multiples of Rs.1000, notes of higher denominations pull out. In such cases maximum times you get multiples of Rs.500. I have never seen people getting notes of denominations Rs. 50 or 20. In fact, the very absence of options to mention the respective denominations you want, is an indication that you will receive notes of higher denomination..

  • #578207
    ATMs became popular with the public because of convenience they offered and banks became happier as it reduced their cost. Paying a regular employee who sits on the bank counter cost much more than providing ATM machines. Now introducing small denomination note will again raise the cost to the bank. Presently, disbursing banks notes of denomination below Rs. 50 has not yet been conceived.

    Generally, it is presumed that the people will go the ATM for withdrawing some lump some amount of money for their day to day use. Perhaps people can do petty cash management at their own level by using the cash withdrawn from the ATM machines in such a manner that their requirements are fulfilled.

    Let us encourage each other in sharing knowledge.

  • #578214
    I do agree with your opinion. Even I feel that lower denomination should be there in ATM. But don't know how much feasible that will be for banks.


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