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Economics/ATM Accepting Coins Currency ?.


QUESTION: Dear Pallas

Assuming that $50, $100 are manufactured as coins then can ATM Machine accept (input) and output to the Customer who wants to withdraw money in the forms of coins ?.

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

ANSWER: again, this is an issue of practicality.  and may be programming too.  atm's have a scanner that reads and sorts the bills, coins, on the other hand, would need to be weighed, e.g. vending machines.  

---------- FOLLOW-UP ----------

QUESTION: Dear Pallas

Thank you.

Here the challenging aspect would be segregation of coins value kept in the ATM Machine ?. i.e. Rs 1, Rs 10, Rs 50, Rs 100, Rs 500, Rs 1000, RS 5000 etc in coins similar to paper notes currency.

There could be two drawers within ATM machine one each for paper currency notes and one for coins ?.

If a customer wants to withdraw money from ATM Machine, Then there could be output of notes and coins both, only notes, only coins.

Awaiting your reply,

Thanks & Regards,
Prashant S Akerkar

I don't agree, the coins are too heavy vis a vis paper notes.  Remember that 1MM US dollars in 100 denominated bills weighs roughly a 22 pounds, how much would it weigh in quarters or one dollar coins? It is just not practical. Look at the postal service vending machines: if you insert a 20 dollar bill and want to buy an 8 dollar stamp booklet, you end up with 12 one dollar coins which weigh far more and take far more space than 12 one dollar bills.  If it would be feasible, both practically and financially, the postal service would dispense both coins and bills. the vending machines don't dispense bills, just coins.  I am sure there is some engineer reason in addition to cost effectiveness.


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