What are Micro ATMs and how it will Work

0
544

Now eac and everyone is tired of waiting in endless queues at ATMs. Micro ATM may be able to help you.

Ever since Modi government launched his drive, the nation has been facing a severe cash crunch. Following relentless complaints from citizens, Opposition, and bankers too, the government introduced a series of measures to ensure people can withdraw money, and one such measure is micro ATMs.

“Micro ATMs would particularly help address the problems that people are facing in rural and semi-urban areas, where the ATM network is not as strong currently”, Department of Economic Affairs Secretary Shaktikanta Das.

There are about 201861 ATMs in India, according to RBI data. Of these, 1,03,282 are onsite and 98,579 offsite. But for the cash starved citizens, this is not enough. Filling up ATMs has been affected because bank staff are under pressure . It is taking far longer to get money for loading and carrying to ATMs. Technical changes for recalibration involved software as well as hardware work. More than 1,000 professionals are on the job.

The government’s announcement of has instantly created a buzz. People are asking questions like what Micro ATMs are, how do they function, etc.

So, What are Micro ATMs?
Micro ATMs are card swipe machines through which can remotely connect to their core banking system. This machine comes with a fingerprint scanner attached to it. In other words, micro ATMs are handheld point of sale terminals used to disburse cash in remote locations where bank branches cannot reach. Micro ATMs are similar to point of sale (PoS) terminals and are a doorstep mobile banking arrangement cum-mobile ATM device.
How is it more convenient ?
1. According to bankers, the cost of deployment of a is lesser than that of an ordinary ATM. ATMs need at least 80-100 transactions a day to be viable as they costs several lakhs.  A costs less than Rs 20,000. ( cite copy, and link)
2. It is portable
3. has connectivity through GSM, hence it can travel from village to village, said Das during a press interaction on Monday.
Disadvantages:
1. cannot provide ‘anytime’ money. Hence if the bank correspondent is unavailable or the shop keeper has shut his shop, the account holder will not be able to undertake any financial transaction.
How does work?
Bank will assign a correspondent who will sign up customers in remote areas after verifying their identity (fingerprint can be used as an authentication tool for rural people ). The fingerprint and personal details may also be linked to the Aadhaar Card, which will then serve as the ID proof required to withdraw money.