ZCZC
BCN-05
INDIA-ATMs-RBI
Dry ATMs: Par panel nudges RBI to fix the problem
New Delhi, Jan 6, 2019 (BSS/PTI) – A parliamentary panel has asked the
Reserve Bank to address the problem of perpetually dysfunctional ATMs so as
to avoid any situation of forced cash crunch.
The Standing Committee on Finance has also asked banks to install adequate
number of ATMs. The panel tabled its report in Parliament last week.
As per a data of RBI, there were 2,21,492 Automated Teller Machines (ATMs) in
the country as at September-end 2018.
These include 1,43,844 ATMs of public sector banks, 59,645 ATMs of private
banks and 18,003 of foreign banks, payments banks, small fiance banks and
White Label ATMs (WLAs), which are owned and operated by non-bank entities.
“As digital transactions have not become anywhere near universal, the
committee would urge upon RBI to pursue the lingering problem of
dysfunctionality as well as shortage of ATMs vigorously with banks, while
ensuring the economic viability of ATMs for all stakeholders, so that a
forced cash crunch is not imposed on the public,” the report said.
The panel headed by senior Congress leader M Veerappa Moily also noted that
RBI’s remonetisation drive has not augmented/resolved the cash supply to ATMs
in rural/semi-urban areas, forcing shutdown of many ATMs.
The committee has expressed concern that “there are just not enough” ATMs
being installed or added to cater to the rising demand for cash in an
expanding economy, even as more and more debit cards are being issued and
large number of Jan Dhan accounts opened by banks.
ATMs have become an important channel for withdrawing money even after the
close of banking hours. Digital transactions are also catching up.
Besides ATMs, basic banking services are provided by business correspondents
through their micro ATMs.
BSS/PTI/HR/1500