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Half of ATMs to be recalibrated by next week

An official said the government has stepped up printing of new 500 rupee notes so that it can be made available to people.

By PTI | Updated:
NEW DELHI: With seemingly never-ending queues in front of banks and post offices, the government today said it will take one more week to recalibrate half of the cash vending two lakh ATMs to dispense the new 500 and 2,000 rupee notes.

An official said the government has stepped up printing of new 500 rupee notes so that it can be made available to people.

Currently, the ATM withdrawal limit from savings bank accounts stands at Rs 2,500 a day, but most ATMs are dispensing only Rs 2,000 notes or Rs 100.

"It will take another one week for 50 per cent of the ATMs to be recalibrated so that they can dispense the new 500 and 2,000 rupee notes," the official said.

The government is now focusing on making cash available on offsite ATMs as well, he added.

Prime Minister Narendra Modi had on November 8 said Rs 500 and Rs 1000 notes will cease to be legal tender and asked people holding such notes to deposit or exchange the same with banks. He had said new Rs 2,000 and Rs 500 notes would be introduced with different color and design.
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To dispense these new design notes, the ATMs need to be recalibrated.

Finance Minister Arun Jaitley said on Saturday that it will take up to three weeks for all two lakh ATMs in the country to be recalibrated.
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How demonetisation will impact top 11 sectors of economy
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TEXT: ET Bureau

As the demonetisation initiative encourages the use of plastic and electronic money, cash transactions will become less and less common. This, analysts reckon, will have its share of benefi ts for the economy, apart from boosting tax coffers.

The transition to a cashless economy will also improve savings in financial assets which will benefit intermediaries such as banks, NBFCs, microfinance and digital money operators.

Here’s a low-down on the impact of demonetisation on the top 10 sectors of the economy, according to ICICI Securities.
TEXT: ET Bureau As the demonetisation initiative encourages the use of plastic and electronic money, cash transactions will become less and less common. This, analysts reckon, will have its share of..
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Demand is likely to dip for a couple of months for two-wheelers, but passenger vehicles and tractors will be less impacted. In the two-wheeler industry, around 35-45% purchases are made via financing, while the rest are though banked cash, or are simply “unaccounted“.

But in the passenger vehicles segment, close to 75%-80% of sales are either through financing, or even down payments are made mostly by cheques -so this segment could face less heat.

As for tractors, close to 65% of the purchases are financed, therefore the impact of cash squeeze could be minimal.
Demand is likely to dip for a couple of months for two-wheelers, but passenger vehicles and tractors will be less impacted. In the two-wheeler industry, around 35-45% purchases are made via financing..
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Companies and dealers are indicating that volumes may get impacted in the near-term as real estate demand (which is 55-60% of overall demand), especially in tier 2 and 3 cities, may get affected in the interim.

Demand in tier-1 cities has been weak for the past 2-3 years. But infrastructure demand, backed by government spending which has been driving growth, is unlikely to be impacted.
Companies and dealers are indicating that volumes may get impacted in the near-term as real estate demand (which is 55-60% of overall demand), especially in tier 2 and 3 cities, may get affected in t..
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The impact won't be big largely due to the B2B nature of business. However, payment to sub-vendors may face some liquidity issues.
The impact won't be big largely due to the B2B nature of business. However, payment to sub-vendors may face some liquidity issues.
The move towards a cashless economy will boost savings in financial assets.

With any sharp infusion of deposits and relatively limited avenues to lend, the credit deposit ratio for banks would become unfavourable, and thus impact margins.

In case of a spike in capital adequacy, it would be positive for margins. While in the event of a higher rise in deposits, the immediate avenue to deploy would be G-Secs, and this could create a temporary downward blip in bond yields.

Thus some of banks could see windfall gains on treasury.
The move towards a cashless economy will boost savings in financial assets. With any sharp infusion of deposits and relatively limited avenues to lend, the credit deposit ratio for banks would becom..
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The move is good for the organised industry. But in the short term, it may impact the working capital in FMCG distribution. Anecdotally, there's always a huge panic among distributors -business may be impacted in the short term with liquidity choking up, thereby impacting FMCG revenue growth.There will be a shift from unorganised to organised sector in the jewellery industry.
The move is good for the organised industry. But in the short term, it may impact the working capital in FMCG distribution. Anecdotally, there's always a huge panic among distributors -business may b..
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There's no material impact as average transaction size is very small. However, slowdown in smartphone sales could potentially slower adoption of mobile broadband subscriber penetration.
There's no material impact as average transaction size is very small. However, slowdown in smartphone sales could potentially slower adoption of mobile broadband subscriber penetration.
Paint companies which are into big project sales, deal in cash component worth 30-40% of sales, while for shops which have higher retail sales, cash component could be 70-80%.Therefore, paint companies could face fall in sales in the short term.
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A possible fall in the interest rate will be positive for yield players.

Coal prices have risen recently, with China cutting domestic production.With Trump focusing on US competitiveness, there's a good chance that China will reciprocate allowing coal prices to fall again.

Source: ICICI Securities
A possible fall in the interest rate will be positive for yield players. Coal prices have risen recently, with China cutting domestic production.With Trump focusing on US competitiveness, there's a ..
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