NCR Corp. is modifying thousands of automated teller machines it sold to banks in Pakistan but which do not accommodate a resized currency.
Rob Evans, the Dayton, Ohio, company's director of industry marketing, said in an interview Thursday that the newly designed 500 rupee and 5,000 rupee notes are slightly smaller than the previous ones, and are jamming the machines.
Pakistan's central bank issued the currency last month.
"Ordinarily the Bureau of Engraving and Printing will alert ATM manufacturers in advance when they redesign currency," Mr. Evans said. This generally is done nine to 12 months before any change occurs, but such an advance warning was not given in this case. He said that ATMs all over Pakistan have been jamming since the new money was released.
The smaller notes do not fit properly in ATMs' cash-dispensing cassettes, he said, so "they get knocked off kilter when the dispense arm comes to pick out the note, and so the notes get jammed."
Mr. Evans said it is relatively simple to tighten the rails within a cassette to hold the smaller notes. However, Pakistan's central bank is not making it easier for ATM owners because the older notes remain in circulation.
"It is interesting that they would resize the note and keep both notes in circulation at the same time," he said. "That creates a problem because you don't know what you're going to get in the ATMs. Are you going to dispense the smaller one or the larger?"
Such problems occur periodically, Mr. Evans said. For example, Poland issued a new note that was a different size from its predecessor several years ago, and ATMs jammed then, too.
