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Consumer Voice - - Atm Transactions -

RBI gover­nor hints at ATM with­out bank ac­count

RBI has given in-prin­ci­ple ap­proval to set­ting up of a new pay­ment sys­tem that will fa­cil­i­tate fund trans­fers from bank ac­count-hold­ers to those with­out ac­counts through ATMs. Un­der this sys­tem, the sender can have the money with­drawn from his ac­count through an ATM trans­ac­tion. The in­ter­me­di­ary pro­cesses the pay­ment, and sends a code to the re­cip­i­ent on his mo­bile which al­lows him to with­draw the money from any nearby bank ATM. This is called the ‘card­less cash’ with­drawal fa­cil­ity. Cus­tomers can trans­fer money from their own ac­count to any­one in In­dia with a mo­bile num­ber. This fa­cil­ity can be ini­ti­ated by log­ging into the in­ter­net bank­ing of that bank.

ATM trans­ac­tions for the blind

RBI has di­rected all the new ATMs to be in­stalled by com­mer­cial banks to pro­vide au­di­ble in­struc­tions and Braille key­pads. They will be ‘talk­ing’ ATMs to aid vis­ually im­paired/chal­lenged cus­tomers (blind and peo­ple suf­fer­ing from low vi­sion). The RBI has di­rected the banks to have a clear roadmap for con­vert­ing all ex­ist­ing ATMs into talk­ing ATMs with Braille key­pads. Banks could at­tach ATMs with head­phones and use Braille stick­ers on key­pads to ex­tend this fa­cil­ity im­me­di­ately.

ATMs for the phys­i­cally chal­lenged/dif­fer­ently abled

RBI has is­sued a di­rec­tive to make ATMs more ac­ces­si­ble to phys­i­cally chal­lenged/wheel­chair-bound cus­tomers by pro­vid­ing ramps at the en­trances. Banks have been asked to pro­vide this fa­cil­ity wher­ever fea­si­ble for the ex­ist­ing and in­vari­ably for fu­ture ATMs so that the height of the ATMs does not cre­ate an im­ped­i­ment in their use.

Bulk cash de­posits through ATMs

One of the banks has planned to open ATMs ca­pa­ble of ac­cept­ing bulk notes and re­cy­cling cash, in place of the ex­ist­ing sys­tem of ac­cept­ing de­posits (wherein the cash de­posits are sub­ject to phys­i­cal verification of the cash by bank em­ploy­ees). The ATMs are ca­pa­ble of au­then­ti­cat­ing cur­rency notes, cred­it­ing them in­stantly to the ac­count, re­cy­cling cur­rency notes, and us­ing the de­posited cash for with­drawals.

Avail­abil­ity of in­sur­ance cover for ATM card­holder

Some of the banks have a tai­lor-made in­sur­ance pol­icy that pro­vides in­sur­ance cover (free for a limited pe­riod) for per­sonal ac­ci­dent for an ATM card­holder who has an ac­count in that bank.

In­sur­ance cover for fraud­u­lent ATM trans­ac­tions

Some of the gen­eral in­sur­ance com­pa­nies of­fer in­sur­ance cover on fraud­u­lent ATM trans­ac­tions as a re­sult of the ATM card be­ing lost/stolen from one’s pos­ses­sion, sub­ject to the cat­e­gory of the ATM card.

In a 2013 re­port on ‘ In­dian Bank­ing’, pro­fes­sional ser­vices com­pany KPMG em­pha­sized that tech­nol­ogy-en­abled so­lu­tions can go a long way in de­vel­op­ing low-cost and ef­fi­cient de­liv­ery chan­nels for ru­ral In­dia. There are sev­eral tech­nolo­gies which have al­ready come up in the mar­ket – low-cost ATMs, point-of-sale ter­mi­nals, mo­bile-based tech­nolo­gies, etc. Mo­bile- based tech­nolo­gies are likely to lead the way as mo­bile con­sol­i­dates its po­si­tion as an ubiq­ui­tous con­nec­tiv­ity de­vice. The key to suc­cess lies in early adop­tion by the cus­tomers and banks need to work ex­ten­sively to­wards cus­tomer ed­u­ca­tion and aware­ness.

Ru­ral In­dia con­sti­tutes 69 per cent of the to­tal pop­u­la­tion and drives about half the GDP of the coun­try. The pro­por­tion of the ru­ral house­holds earn­ing an in­come of INR 90,000 and above has in­creased to 37 per cent in 2011 as com­pared to ~18 per cent in 2001. In the back­drop of this growth in ru­ral In­dia, how­ever, there is still a huge de­mand–sup­ply gap for bank­ing ser­vices. Ru­ral In­dia ac­counted for only 9 per cent of the to­tal de­posits and ~10 per cent of the to­tal credit of the bank­ing sec­tor in 2011, with a large num­ber of ru­ral house­holds hav­ing no ac­cess to for­mal sources of credit.

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