RBI sets up panel to oversee ATM recalibrations

Reserve Bank of India (RBI) said on Monday it will set up a task force under Deputy Governor S S Mundra to oversee the recalibration of ATM machines after the country introduced new banknotes to replace old 500 rupee and 1,000 rupee notes.

The task force will comprise officials from the finance ministry, banks, and the central bank, as well as a representative from the Ministry of Home Affairs and the National Payments Corporation of India, the Reserve Bank of India said.

The panel will provide "direction and guidance" for recalibrating ATM machines to dispense the new notes.

Last week, Prime Minister Narendra Modi declared that 500 rupee and 1,000 rupee bills had ceased to be legal tender for transactions, in a bid to crack down on corruption and the finances of Islamist militants who target India, as well as to bring unaccounted wealth into the mainstream economy.

The sudden measure to withdraw higher value banknotes has sparked public anger as millions of people have lined up at ATM machines across the country to get cash.