One needs no introduction about demonetization and its effect in 2016.
“2016 will be remembered as ATM year” as social media has framed it. Namely Amma, veteran actress and Tamilnadu Chief Minister, Jayalalitha’s death, Trump, victory of Donald Trump as president, Modi for his brave and clinching decision of demonetizing Rs 500 and 1000 notes.
You might have seen many ATMs with nice bracelets written ” Out of Cash”. Reason being shortage of money available and delays in transporting newly printed money.
If you still think they had not handle this properly. You might need to read this.
How Money is prepared and transported
Before the beginning of each financial year, RBI makes a projection of the requirement of currency notes, taking into account circulation of notes, GDP growth, use of electronic payments, etc. This is discussed with the government and orders placed with the presses.
Preparing The Paper
The high-security banknote paper is designed, produced and supplied by currency paper mills in Mysuru and Hoshangabad, which can together produce 18,000 metric tonnes of note paper annually. Banknote paper can also be imported.
Some embedded security features, such as the multi-tonal, three-dimensional watermark, micro-lettering and security threads are incorporated in Mysuru and Hoshangabad. An R&D team works constantly to review and improve security features.
Notes are printed in sheets before being telescopically numbered and cut. There are 100 notes in a packet; 10 packets in a bundle. There are 40 Rs-2,000 notes in each sheet.
Once printed, the notes are moved to the currency chests of the RBI and to currency chests maintained by commercial banks, with security arranged by state governments/police.
The ATM Loading
8,800 vans of 7 registered cash logistics firms carry cash to ATMs. The machines have four cassettes for notes of different denominations, which are currently being recalibrated for the new currency sizes.
Sometimes Cash Flies
To ferry cash to particularly remote areas such as some places in the Northeast and Jammu & Kashmir, helicopters or fixed wing aircraft may be used. Typically, in a remote area, an ATM needs to be loaded only once in 6 days.
So, Planning and executing of demonetization for a country like India was impermeable.
Sure there have many pit falls. But there exist valid reasons,too.
This can be reduced a lot using digital money. So, Go cashless and use digital money.
Source: Indian Express