Banks and ATMs today witnessed more chaos and even longer queues as cash-starved people queued up to exchange and withdraw money.
Amid chaos, Union Finance Minister Arun Jaitley today addressed the media over the demonetisation issue and announced that it will take at least two-three weeks to recalibrate the ATMs and assured the public that the common man's money is safe.
The finance minister said that the recalibration of ATMs in advance was not possible considering the secrecy of operation.
Here's how the ATMs will be recalibrated and why it needs time:1. An ATM has four cassettes filled with money. Many ATMs have two cassettes filled with Rs 1,000 notes, one with Rs 500 notes and one with Rs 100 notes. On an average, a cassette's maximum capacity is 2,000 notes.
Now with the demonetisation move, the Rs 500 and Rs 1000 notes are being removed from the ATMs and in place of these notes, the new currency and old currency of small denominations are being put for future withdrawal purposes. 2. Some cassettes cannot handle the Rs 100 and Rs 50 notes, so now each cassette will be calibrated to act in a certain manner to handle a certain currency. It works with the software and the whole ATM machine in tandem to identify features such as weight, dimensions, design and security features of a currency and dispense them.
3. Presently, ATMs are unable to read the new note size, and therefore, sensors are unable to dispense notes. In the process of recalibration, ATM sensors have to be changed to enable them to dispense the new currency notes.