From next year, no ATM refilling post 9 pm in cities, 6 pm in rural areas

No ATM will be replenished with cash after 9 pm in cities and 6 pm in rural areas from next year even as two armed guards will accompany crisp notes in transit as per a new directive issued by the Home Ministry.
The deadline for putting money in the ATMs located in Naxal-hit areas is 4 pm while private cash handling agencies must collect money from the banks in the first half of the day and transport notes only in armoured vehicles.

In a notification, the Home Ministry said the new Standard Operating Procedures (SoPs) would come into effect from February 8, 2019 in view of the spurt in incidents of attacks on cash vans, cash vaults, ATM frauds and other internal frauds leading to increased sense of insecurity.
There are over 8,000 privately owned cash vans plying across the country, operated by non-bank private agencies, and they handle over Rs 150 billion daily on behalf of banks.
Sometimes, the private agencies keep currency overnight at their cash vaults.
"No cash loading of the ATMs or cash transportation activities shall be done after 9 pm in urban areas, after 6 pm in rural areas and before 9 am or after 4 pm in the districts notified by the central government as Left Wing Extremism affected areas," the notification said.
The agencies shall provide private security for the cash transportation with the requisite number of trained staff, every cash van shall have one driver, two armed security guards, two ATM officers or custodians.
One armed guard must sit in the front along with the driver and another in the rear portion of the van while in transit.
During loading or unloading, nature's call, tea or lunch break, at least one armed security guard shall remain present with the cash van all the time.
The ex-serviceman, otherwise eligible, may preferably be appointed for providing security for cash transportation.
Every cash transportation shall be carried out only in secured cash vans fitted with GPS tracking device and it must be ensured that no cash van carries cash of more than Rs 50 million per trip.
No private security agency shall appoint anyone for the cash transportation unless the person has undergone thorough antecedent check like police, Aadhaar and residence verifications, previous employer check, credit history check and fidelity insurance.
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Each of the cash boxes shall be secured to the floor with separate chains and locks that can be opened only by using separate keys kept with different custodians.
The cash van shall be provided with a small CCTV system with at least five days recording facility and three cameras installed in front, rear and inside of the cabin.
A security alarm with GSM-based auto-dialer shall be provided with a motorised siren.
The cash van shall be equipped with hooter, fire extinguishers and emergency lights to ensure quick reaction in case of an attack.
The private security agency will ensure that all cash handling, including counting, sorting, and bundling activities shall be carried out in secured premises in accordance with specific guidelines.
The premises shall be designed to include two physically independent areas, one for general office purpose and other for secured cash processing and handling activities and it shall accommodate space for cash deposit, collection, sorting, counting and delivery and dispatch of cash on secured cash vans.

Rs 1 billion needed to recalibrate 240,000 ATMs for new Rs 100 notes

New Rs 100 notes will require a recalibration of 240,000 automated teller machines (ATMs) across the country, and the process will cost the industry about Rs 1 billion and take more than a year, said ATM operators.
The Reserve Bank of India (RBI) announced on Thursday it would soon release lavender-coloured Rs 100 notes bearing the signature of Governor Urjit Patel. The dimensions of the new banknote, according to the RBI’s notification, would be 66 mm x 142 mm, significantly smaller than the existing one, which measures 73 mm x 157 mm.
“We believe the exercise of recalibration for new Rs 100 notes could cost over Rs 1 billion and take 12 months,” Loney Antony, managing director, Hitachi Payment Services, said, adding the process could take longer if not managed well.
A representative of the Confederation of ATM Industry (CATMI) said ATM players were not consulted about the move and they received the news via media platforms.
This is the fifth new banknote size to be issued by the central bank since demonetisation in November 2016, and is different from the sizes of both Rs 200 and Rs 2,000. The production of the new notes has already started in Devas and will start in other mints as well, a senior government official said.
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The difference in dimensions of the old and new Rs 100 notes could pose a serious problem.
“There are four cassettes in every ATM. The different dimensions of the Rs 100 note will mean that two cassettes will be used for a single denomination, leaving only two cassettes for the higher denomination notes. This will reduce the cash carrying capacity of ATMs,” said Sanjeev Patel, managing director, Tata Communications Payment Solutions. He added it would not only increase the cost of carrying cash for ATM operators but could also cause a cash crunch.
Having learnt its lessons from previous experiences of cash shortages, the RBI, after consultation with the government, will go slow in rolling out the new, smaller Rs 100 notes. “The pace of the roll-out depends on the demand for Rs 100 notes in various parts of the country, and it is one of the most demanded denominations. It also depends on the old Rs 100 notes, which come back to RBI chests. A lot of those notes will be put back into circulation. We don’t want to extinguish them till there are enough of the new notes in circulation,” an official said, adding the recalibration of ATMs would be a slow process and carried out in phases.
The ATM industry raised the possibility of a cash shortage if the supply of the new notes did not match the number of cassettes being recalibrated.

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“There is a likelihood of an imbalance between the supply of the new notes and the withdrawal of the old notes, especially in the hinterland. If the supply of the new currency is unable to fill the gap created by the withdrawal of the old currency, the dispensation of Rs 100 notes through ATMs will get affected till such time as the imbalance exists,” said Radha Rama Dorai, managing director, ATM & allied services, FIS, a payments service provider.
The RBI started slow on new Rs 200 notes and has ramped up production in the last few months because of demand, and the same process would be followed for new Rs 100 notes, an official said.
One of the key reasons for cash crunch in April was the conversion of Rs 2,000 cassettes for new Rs 200 notes. “The supply of Rs 200 notes is not enough. While some ATM operators have not recalibrated their cassettes, the ones that have recalibrated are suffering from empty cassettes,” said an ATM operator.
Challenges ahead
Recalibration could take over a year
Difference in sizes of new and old Rs 100 notes is key issue
This might result in cash crunch, owing to reduced ability of ATMs to hold cash
Learning from previous experiences of cash shortage, government aims at smoother transition
Govt will keep old notes in circulation till supply of the new meets demands

Cost of Rs 1 bn to be incurred in recalibrating ATMs for new Rs 100 notes

The ATM operations industry today said the introduction of a new Rs 100 note creates many challenges and an investment of Rs 1 billion will be required to recalibrate the country's 240,000 machines.
The introduction, which comes even as the industry is just about finishing the recalibration to dispense the newly introduced Rs 200 denomination notes, may only aggravate the pain, they said.

"We need to recalibrate ATMs for the new Rs 100 note. In India, therefore around 240,000 ATMs will need to be recalibrated," V Balasubramanian, the president of FSS who also serves as the director of industry lobby Catmi, said.
He added that the co-existence of both the new and the older versions of Rs 100 notes poses a challenge.
"The continuity of old notes, introduction of new notes through the ATM channel and their availability will determine whether to recalibrate or not," he added.
Radha Rama Dorai, the managing director for ATM and allied services for FIS, said there is a likelihood of an imbalance between the supply of the new notes and the withdrawal of the old notes, especially in the hinterland.
"If the supply of the new currency is unable to fill the gap created by the withdrawal of the old currency, dispensation of Rs 100 currency notes through the ATMs will get affected till such time the imbalance exists," she said.
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Hitachi Payment Services' managing director Loney Antony said the exercise of recalibration of the new Rs 100 note could take over Rs 1 billion and 12 months of time to completely recalibrate 240,000 ATMs in the country.
"As the new Rs 200 note recalibration for all ATMs is still not completed, the recalibration of the new Rs 100 note could take longer, unless it is planned properly," he added.
"The ATM industry is just about finishing the calibrating the ATMS for Rs 200 denomination. This recalibration would again require investment in terms of cost and efforts," Dorai said.
Euronet Services' managing director Himanshu Pujara said while the introduction of the indigenous note is a proud moment, "the change in dimensions will make dissemination difficult as it will not be available through the ATM channel."
All the ATMs will need to be calibrated, which is time-consuming and a very big cost on an already struggling industry, he warned.
The RBI had yesterday announced that it will soon issue a new Rs 100 note in lavender colour having motif of Rani ki vav', a stepwell located on the banks of Saraswati river in Gujarat's Patan.
"All Rs 100 banknotes issued earlier will also continue to be legal tender," the central bank said.
The note has other designs, geometric patterns aligning with the overall colour scheme, both at the obverse and reverse.
The dimension of the banknote will be 66 mm x 142 mm, making it smaller than the current Rs 100 notes as against the current note's dimension of 157 mm x 73 mm.

Feeble signs of calm in Thoothukudi; shops, hotels remain closed

S Vasantha has been trying to buy sugar tablets for the last four days. First, the chemist was closed, when it reopened the ATM had run out of money. Like Vasantha, life for residents of Thoothukudi has been thrown completely out of gear as the busy streets of the city, renowned for its pearl fishing, remained deserted on Friday.
In the market road, most shops were closed for the fourth day after 13 people were killed in police firing during protests against environmental degradation by the Sterlite Copper plant in the city. The company denies the charge.

Though the Madras High Court has stayed the expansion of the plant and the state government has ordered its closure, protesters want an assurance it will not reopen because it has allegedly flouted environmental laws and caused health problems.
Besides, they want action against officials involved in the firing on Tuesday and Wednesday.
Thoothukudi started calming down on Thursday after Tamil Nadu Chief Minister K Palaniswami announced the closure of the plant and the State Pollution Control Board ordered its power supply be switched off.
Most ATMs and card-swipe machines are not working because the internet services have been halted for five days in Thoothukudi, Tiruneveli and Kanyakumari districts.
In an attempt to pacify the public, the state government has transferred senior police and other officials, including the district collector.
The new district collector, Sandeep Nandur, who took charge on Thursday, went to the Government Hospital to meet the injured and relatives of those who were killed.
He told them medical care would be given to the injured. He also ordered Amma canteens to provide free food and co-operatives to supply fruit, vegetables and milk for the next three days.
"I expect normalcy to return in one or two days," Nandur said.
Residents are still in shock. In a few pockets such as Anna Nagar, Thres Puram and places near the Sterlite factory, there is tension and heavy police deployment.
The road leading to Thres Puram, a fishing hamlet where a 47-year-old woman, Jhansi, was killed, has been blocked with fishing boats and large pipes so that the police cannot enter.
Johnson, Jhansi’s son-in-law who was allegedly detained by the police and made to sign on a piece of paper before her body was handed over to him, said she was walking home after dropping a parcel of fish at his house.
Students who cleared their boards are not able to register for entrance exams.
Cargo worth Rs 10-12 billion, including textiles from Tirupur, is lying at Tuticorin Port. Around 5,000 lorries have stopped plying.
For once, the ruling AIADMK and the DMK are on the same page. Neither party wants the Sterlite plant to reopen or a second one to come up.