ATMs find big is beautiful...
There are several parameters, which the currency reader checks while reading a note.
By Harsimran Singh, TNN |
NEW DELHI: NCR Corp, the largest automated teller machines (ATMs) maker of the world, is facing problems with the Rs 50 and Rs 100 currency notes in India. According to the company, these are inferior in quality to global currencies like the Dollar and the Euro. "The machines get jammed. The Rs 1,000 and Rs 500 are of good quality, but the Rs 50 and Rs 100 currency notes are of poor quality. The paper is thin, gets crumpled and develops holes easily. While reading, these notes get crumpled thereby jamming the machines,��� NCR Corp's India, managing director, Deepak Chandnani, told ET. He further said that since ATMs are designed to dispense no cash instead of wrong cash, it is talking to the government to resolve the issue.
There are several parameters, which the currency reader checks while reading a note. "If the note has developed a hole, the reader won't be able to read a particular parameter," Mr Chandnani said.
RBI on the other hand, has advised banks not to staple notes. But there is no immediate plan to change currency. "I don't think RBI has any plans to bring out new notes in the near future," said an RBI official.
Globally, the quality of a note depends on the paper, ink and watermarks used. While Indian currency is made of paper entirely, Euros and Australian dollars are composed of polyester like synthetic mix, making them more durable.
About 25,000 ATM machines are in operation in India at present of which 15,000 are owned by the Ohio-based NCR. Another Ohio-based ATM major Diebold along with Paderborn (Germany) based Wincor have deployed the remaining 10,000. NCR is also augmenting the capacity of its Pondicherry-based manufacturing plant to roll out about 6,000 ATMs in India, this year.
India adds about 5,000-7,000 ATMs every year. SBI has the largest deployment of 5,600 ATMs in the country followed by other banks like ICICI, HDFC, Canara Bank and others. Still, India lags behind China and US which have about one lakh and four lakh ATMs, respectively.
Recently, NCR developed a technology through which customers can directly deposit currency notes into ATM machines. "Wads of notes can be inserted in the upgraded ATMs. The machine will count the number of notes including any paper you might have slipped through. The ATM will then verify the number of readable notes and reject the bad ones," said Mr Chandnani.
In India however, many variants of a single denomination note exist (like Rs 100, old and new notes). This requires different templates for a single note, which is a challenge. "While ATMs will be able to accept cheques by this year, currency deposit inside ATMs may take a year or two."
There are several parameters, which the currency reader checks while reading a note. "If the note has developed a hole, the reader won't be able to read a particular parameter," Mr Chandnani said.
RBI on the other hand, has advised banks not to staple notes. But there is no immediate plan to change currency. "I don't think RBI has any plans to bring out new notes in the near future," said an RBI official.
Globally, the quality of a note depends on the paper, ink and watermarks used. While Indian currency is made of paper entirely, Euros and Australian dollars are composed of polyester like synthetic mix, making them more durable.
About 25,000 ATM machines are in operation in India at present of which 15,000 are owned by the Ohio-based NCR. Another Ohio-based ATM major Diebold along with Paderborn (Germany) based Wincor have deployed the remaining 10,000. NCR is also augmenting the capacity of its Pondicherry-based manufacturing plant to roll out about 6,000 ATMs in India, this year.
India adds about 5,000-7,000 ATMs every year. SBI has the largest deployment of 5,600 ATMs in the country followed by other banks like ICICI, HDFC, Canara Bank and others. Still, India lags behind China and US which have about one lakh and four lakh ATMs, respectively.
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India faces many challenges to ATM deployment, especially in Tier II towns, says Mr Chandnani. "Most Tier-II cities face considerable down-time due to irregular power supply. Telecom connectivity and slow pace of debit and credit card roll out is also a challenge," he adds. Recently, NCR developed a technology through which customers can directly deposit currency notes into ATM machines. "Wads of notes can be inserted in the upgraded ATMs. The machine will count the number of notes including any paper you might have slipped through. The ATM will then verify the number of readable notes and reject the bad ones," said Mr Chandnani.
In India however, many variants of a single denomination note exist (like Rs 100, old and new notes). This requires different templates for a single note, which is a challenge. "While ATMs will be able to accept cheques by this year, currency deposit inside ATMs may take a year or two."
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