To overcome the shortage of small notes and coins, the government will install hybrid ATMs. These machines will give notes and coins of Rs 10, 20, 50 instead of Rs 500. These will be installed in crowded places, the pilot project of which is going on in Mumbai.
New Delhi: To overcome the shortage of small notes and coins caused by digitization and UPI, the central government is planning to install hybrid ATMs in crowded places across the country. The Mint has quoted government sources as saying that with these new automated teller machines, instead of the Rs 500 note, you will be able to take small notes and coins like Rs 10, 20, 50 as per your need. Currently, it is being tried as a pilot project in Mumbai. The report says that after getting approval, this system will be implemented in the entire country.
These ATMs will be installed at places like transport hubs, markets, hospitals and government offices. Sources say that this step will also put pressure on the Reserve Bank to increase printing of small value notes.
At present, Rs 500 note is the most in circulation. Shopkeepers and public transporters face a lot of difficulty in exchanging high notes in daily transactions. Cash is still used more in small towns, so it is expected that this move will benefit the economy. However, there are some concerns that if the supply of small notes is not sufficient, machines alone will not be able to solve the problem. It is being said that along with this, printing, logistics and circulation of small notes will also have to be increased.