What Are Micro ATMs, What They Do, and How They Could Help Solve the Cash Crunch-Important (Download PDF)

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Installing ATMs in rural areas is unviable for banks due to the lower number of accounts, low volume of transactions, low value of transactions, and high cost of setting up an ATM. Micro ATMs provide a one-stop solution bringing secure ATM services to the unbanked rural areas.

Micro ATM however cannot provide ‘anytime’ money. It requires a banking correspondent (an employee) to assist the transaction. The micro ATM will close down if the Banking Correspondent is not available when the account holder requires funds.

Micro ATMs

How Do Micro ATMs Work?

  • The banking correspondent carries a micro ATM similar to the small machine used in retail stores to swipe debit or credit cards to purchase goods.
  • While opening a bank account, the banking correspondent can take a fingerprint of the rural customer- used as an authentication tool in place of a signature. The fingerprint and personal details may also linked to the Aadhar Card, used as the Customer ID.

Features of Micro ATMs

  • Portable
  • Ideal for banking outreach initiatives
  • Activated at a fraction of the cost of ATM machines.
  • Compatible with regional languages.
  • Prints out a receipt.

How Will They Help in Easing Cash Crunch?

Micro ATMs primarily perform following functions

  • Cash withdrawal
  • Cash deposit
  • Balance enquiry
  • Remittances.

Micro-ATMs are meant to allow an individual to deposit or withdraw funds regardless of the bank holding the account. The micro-ATM can allow biometric identification (via Aadhaar) , use of debit and RuPay cards, or authentication using mobile phone number before allowing the individual to access bank account.

Micro ATMs primarily provide low-cost payments platform to everyone in the country.

- Published/Last Modified on: September 6, 2017


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