Page 48 - Banking Finance September 2020

ARTICLE

gaining more and more relevance globally, in the long 3. Round the clock ATMs may be made available only at
run India cannot be expected to remain backward in bus station, railway station /police station / prominent
this domain. Therefore, till the time when the hospitals etc. This will help in reducing operating cost.
cryptocurrencies in India are given legal status, it is 4. The replenishment of cash at all ATMs has to be done
going to be a challenge for ATM service providers to by a separate wing unrelated to the branches, so that
develop technologies for payments in cryptocurrency.
branch banking doesn't get adversely affected.
It will also be a challenge for ATM service providers to
facilitate cryptocurrency through ATMs and remain 5. All standalone ATMs need to be upgraded to Recyclers.
E-Lobby is also sharing the burden of non-cash
pertinent in the market.
transactions being done on ATMs. In future, ATMs may
replace the entire banking services including cash
Suggestive Measures transactions, passbook printing, issue of inter-office
Based on the empirical data available related to ATM, Debit instruments, submission of life certificates by pensioners,
card issued, Debit card transactions, other digital inquiry on products (selecting the products and obtaining
transactions and feedback received, it is evident that ATM details by SMS or e-Mail, Debit mandate registration,
industry has reached to saturation and either become static many more services, which are otherwise available on
or started declining. This is mainly due to increased cost in net banking may also be made available at ATMs).
maintenance of ATM and more emphasis being given on less
6. Cash flow is an integral part of an Indian economy.
cash/cashless economy worldwide. Making less cash or cashless economy not only requires
customer education but also require robust infrastructure
On the other hand, in our country ATMs are not going to be
and secure IT channel which involve a lot of CAPEX. Some
phased out in the near future as compared to some of the
investment in ATM industry along with infra upgrade will
developed countries. It will evolve and take a new
give much better results. The current machines must be
dimension. Keeping in view the huge amount involved in upgraded or replaced with mini-kiosk branch functions
maintenance and further implanting latest security (deposit, withdraw, cheques clearing, ECS/SI mandate,
measures, there is need for cost-benefit analysis of each
raising transaction related complaints, etc.)
ATM. There is also need for rationalising of ATM installed, if
needed closing some of them and/or shifting to a place 7. Customers should be inculcated to go to alternate
channels, India being cash transaction vested economy,
which may be most suitable.
people rush to bank and ATM. Mobile ATM should be
increased. To discourage ATM transaction, ATM charges
Some of the suggestive measures which may
should be reviewed. ATM card should be issued after
help in giving new dimension to ATM Industry viewing customer's transactions at least for three
are as below- months. Minimum balance norms should be brought for
1. ATM should be equipped with NextGen digital banking issuance of ATM card.
products/apps/services to reduce the cost and drive 8. Less space occupying (may be embedded on side of
people towards Cash Less banking. In future, ATM buildings, with access from inside building, incurring less
machines will not only be dispensing cash instead they maintenance cost).
will work as Kiosk where various Digital products/ 9. ATM industry is not having much room for expansion
services get delivered to customers without branch
unless the drastic change in technology. Updated
intervention.
machines with solutions to note jam and wider
2. Door delivery of sealed packets of cash- Devise model acceptance of notes on recycler along with functionality
for delivery of cash through online delivery aggregators where customers can give preference for cross sell or
such as Big Basket, Swiggy etc. An app may be up sell of various products offered to them based on
developed that authenticates the delivery to the right their records. Some technological innovations like
customer. This may be implemented in metro and urban biometric authentication for ATM cash withdrawals to
cities with identified locations and with certain limit of avoid ATM cloning and other related frauds, are need
cash taking a view of the security aspects. of the hour.

48 | 2020 | SEPTEMBER | BANKING FINANCE