Banks also announced a slew of measures, including extension of banking hours, doing away with ATM charges and expanding credit limits to handle the expected huge rush to tender now defunct Rs 500 and 1000 notes.
Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of Rs 500 and 1,000 banknotes, lenders today announced a slew of measures, including extension of banking hours, doing away with ATM charges and expanding credit limits.
Welcoming the demonetisation drive, NCR Corporation, the market leader in the ATM space with nearly half the share, said it is working overtime to update the system so that there is "minimum inconvenience" to the public.
Taking the nation by surprise, Modi last night announced demonetisation of Rs 1000 and Rs 500 notes, making these notes invalid in a major assault on black money, fake currency and corruption.
In conversation with CNBC-TV18, Shikha Sharma, MD & CEO, Axis Bank, said they are going to pull out Rs 500 and Rs 1000 notes from the ATMs and branches.
SBI Group which includes all its five subsidiaries has 55,000 ATMs and 7,000 cash deposit machines (CDMs). SBI alone has close to 17,000 branches and serves tens of millions of customers.
"It's a bold innovative move and honest tax payers have nothing to worry about. Though their may be initial discomfort and inconvenience which should be borne in the larger interest of the society and the nation," Sorabjee, former Attorney General of India, told PTI.
Frequently Asked Questions (FAQs) on Withdrawal of Legal Tender Character of the Old High Denomination Bank Notes
People, he said, do understand the objective behind the move. "And I'm sure they will cooperate in dealing with the difficulties and inconvenience that they might face. And eventually things will settle down." Lavasa said people need money for transaction so for replacement that currency is being introduced.
Last night, after the government's announcement of withdrawal of Rs 500 and Rs 1,000 notes, people rushed to ATMs to withdraw lower denomination valid currency notes.
There was a beeline to acquire the 'hottest commodity' or dispose-off the high value Rs 500 and Rs 1,000 bank notes, which will become illegal tender at midnight.
"It also curtails some amount of that discretionary large spend which can have a cooling impact on inflation. There is a whole lot of positive structural impact which it will create in the economy," Kochhar told PTI.
A bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal was also informed by RBI that the ATM facility was made available with a view to reduce "cash usage and increase electronic transactions in the country".
The central bank recently had conducted a review of steps taken by banks for installing ATMs dispensing lower denomination banknotes.
US-based ATM manufacturer NCR Corporation has bagged a Rs 334-crore order from SBI to install over 7,000 cash-vending machines, making this the single largest order in the country.
Amid government efforts to curtail usage of cash in transactions, payments firm Indepay Networks will launch prepaid cards in February for facilitating secured payments.
Under a new initiative, the bank has started a scheme called 'Hope Loans' by which it will contribute a portion of the proceeds from the repayment of home, personal, education and car loans to select NGOs engaged in sectors like shelter, education, health and environment.
The government has asked RBI and banks to provide details of the data breach and also banks' preparedness to deal with cyber crimes.
The government, he said, has sought a detailed inquiry report into the issue and appropriate action will be taken once it is received.
A security breach at Hitachi, an ATM provider, has put banks across the country on high alert. At stake is the personal information of customers of these lenders, all of whom listed, will soon be issuing new debit cards or asking their customers to change their security code on their existing plastic.
A security breach at some ATM branches has led to breach of security information of various card holders. The country‘s largest public lender State Bank of India (SBI) has cancelled 6,25,000 cards as a precautionary measure.
US banks have trimmed the number of branches by 6 percent since it peaked in 2009, according to Federal Deposit Insurance Corp data. The 93,283 branches open at the end of last year was the lowest level in a decade.
With the country's largest lender, State Bank of India (SBI) approving the merger of its operations with five of its associate banks there are some interesting facts shaping up.
The additions will take the total number of branches in the state to 50, Dena Bank Chairman and Managing Director Ashwini Kumar said.
South Indian Bank will raise Rs 500 crore by issuing debt securities, long-term infrastructure bonds on a private placement basis to augment business requirements.