Dry ATMs: Parliamentary panel nudges RBI to fix the problem
What's the story
A parliamentary panel has asked the Reserve Bank to address the problem of perpetually dysfunctional ATMs so as to avoid any situation of the forced cash crunch.
The Standing Committee on Finance also asked banks to install an adequate number of ATMs.
As per a data of RBI, there were 2,21,492 Automated Teller Machines (ATMs) in the country as at the end of Sep'18.
Information
There are over 1.4 lakh ATMs of public sector banks
Out of the total ATMs, 1,43,844 are of public sector banks, 59,645 ATMs of private banks and 18,003 of foreign banks, payments banks, small finance banks and White Label ATMs (WLAs), which are owned and operated by non-bank entities.
Details
Committee urged RBI to pursue problem of shortage of ATMs
"As digital transactions haven't 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 isn't imposed on public," the report said.
The panel was headed by senior Congress leader M Veerappa Moily.
Remonetization drive
There are just not enough ATMs, Committee expressed concern
The panel also noted that RBI's remonetization drive has not augmented/resolved the cash supply to ATMs in rural/semi-urban areas, forcing the 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.
Insufficient
Despite increasing number of Jan Dhan-accounts, there are insufficient ATMs
The committee said that there are insufficient numbers of ATMs despite the fact that a 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.