The government has asked banks to roll-out over 2 lakh micro-ATMs to meet the need of customers who are facing cash-crunch issues. Micro ATMs will be deployed in around 90,000 urban and semi-urban areas and around 1.1 lakh rural areas.
Watch the video to know how a Micro ATM works. We have featured an IDFC Micro ATM, but each bank has its own machine and may not have all the features shown in the video. But, they would allow you to withdraw, deposit cash and do basic funds transfer.
Watch the video to know more about how an IDFC micro ATM works.
What is a Micro ATM
Simply put, it’s a mini version of an ATM, but instead of a bulky machine that spits out cash, it’s a small handheld device (a glorified point of sale terminal)
Is it a new concept?
Not really, micro ATMs have been active in India especially in rural India for a while now. Especially in areas where setting up traditional ATMs (Shop, AC, Electricity, Security guard and the like) is not viable. Micro ATMs are currently used by many banks to disburse cash in far away locations where branches themselves cannot reach because of connectivity issues. To tackle the cash crunch after demonetisation, the government has asked banks to deploy nearly 2 lakh micro ATMs in the country, in urban as well as rural areas.
It's cheaper for banks
A Micro ATM can cost in the range of Rs 20,000 to Rs 45,000 depending upon the technology it uses. While an ATM will easily cost several lakh of rupees.
How it works
Banks appoint agents to run a micro ATM. You can visit the agent to make financial and non financial transactions. You need to go through your Aadhaar finger scanning verification process by giving your aadhaar number and swiping your finger for verification on the micro ATM machine. Once the verification takes place, your can either withdraw or deposit cash via the agent. Or even make a debit card transaction to withdraw money, and collect it from the agent. IDFC bank official we spoke to said, "The micro atm does not spew out or gulp cash like a normal atm. You do the transaction and the agent gives you cash (for withdrawal) or takes cash from you (for deposit)."
Published Date: Nov 17, 2016 11:27 AM | Updated Date: Nov 17, 2016 14:27 PM