Micro ATM

Micro ATM

MIRCO ATM

"Micro ATMs would particularly help address the problems that people are facing in rural and semi-urban areas, where the ATM network is not as strong currently", Department of Economic Affairs Secretary Shaktikanta Das.

There are about 201861 ATMs in India, according to RBI data. Of these, 1,03,282 are onsite and 98,579 offsite. But for the cash starved citizens, this is not enough. Filling up ATMs has been affected because bank staff are under pressure . It is taking far longer to get money for loading and carrying to ATMs. Technical changes for recalibration involved software as well as hardware work. More than 1,000 professionals are on the job.

Similar to bank ATMs, the micro Automated Teller Machine (ATM) also provide traditional services like withdrawing cash, balance enquiry, cash deposits and much more. However, the micro ATMs are best for carrying out cash transactions in situation when bigger ATMs are running dry. Micro ATMs as the name suggests are a mini version of an ATM. They are developed with features like point of sales (POS), connecting banking networks through GPRS for carrying bank-related transactions. Equipped with card swipe facility, the micro ones can even operate via fingerprint scanner. Generally, these mini ATMs are situated in remote or mobile locations.

Here’s how Micro ATMs operate!

To operate this portal, a person has to undergo verification process such as Aadhaar card with fingerprint scanning or card swipe option. Once verified, he or she will be able to select options for various transactions like cash deposit, fund transfer, eKYC based saving account, Aadhaar seeding, cash withdrawal, balance enquiry and service request acceptance. Note, these options can be different depending upon banks or fintechs.

What are Micro ATMs?

Micro ATMs are card swipe machines through which banks can remotely connect to their core banking system. This machine comes with a fingerprint scanner attached to it. In other words, micro ATMs are handheld point of sale terminals used to disburse cash in remote locations where bank branches cannot reach. Micro ATMs are similar to point of sale (PoS) terminals and are a doorstep mobile banking arrangement cum-mobile ATM device.

How is it more convenient ?

  • According to bankers, the cost of deployment of a micro ATM is lesser than that of an ordinary ATM. ATMs need at least 80-100 transactions a day to be viable as they costs several lakhs. A micro ATM costs less than Rs 20,000. ( cite copy, and link)
  • It is portable
  • Micro ATM has connectivity through GSM, hence it can travel from village to village, said Das during a press interaction on Monday.

Disadvantages:

  • Micro ATM cannot provide 'anytime' money. Hence if the bank correspondent is unavailable or the shop keeper has shut his shop, the account holder will not be able to undertake any financial transaction.

How does micro ATM work ?

  • Bank will assign a correspondent who will sign up customers in remote areas after verifying their identity (fingerprint can be used as an authentication tool for rural people ). The fingerprint and personal details may also be linked to the Aadhaar Card, which will then serve as the ID proof required to withdraw money.