ATMs could be the new bank branches. Here’s how

The Reserve Bank of India (RBI) has proposed that ATMs should be treated equivalent to a bank branch with a bank employee for support. This idea popped up after a study conducted by the RBI showed that mobile penetration in India is highest in Asia and Indians largely depend on ATMs and branches tremendously.

As per the report, 50% of the respondents amongst the Indians, used mobile banking once in a week at the very least as compared to 26% in Malaysia and 44% in China who use mobile banking. Monthly mobile banking transactions have grown 11-overlay to 7 crore for each month in three years.

In parallel to this, Indians also use ATMs and branches too at a very large scale. ATMs keep on dominating as far as numbers of transactions are concerned. It has been reported by the banks that 6.5 crore mobile banking transaction took place in July 2016 against the 75 crore ATM exchanges that took place for the same month. This has incited the RBI to take a gander at augmenting the utilization of this networking of 2.01lakh money machines.

Right now, no individual other than a security gaurd is permitted to be present at ATMs. A few banks have asked that banks be allowed at their own to post their staff or business correspondents at ATMs so that the booths can be all around used for encouraging their business and giving better client benefit.

"It is recommended that this condition (of not allowing bank staff on off-site ATMs) be removed and any electronic kiosks and ATM cash deposit machines, if manned by bank's staff or business correspondent for providing limited customer-based banking services to their walk-in customers, should also be treated as a 'banking outlet' for the purpose of these regulations," the report said.

"Given the consumer preferences, banks need a true 'omni-channel' strategy that meets differing customer needs," the RBI said in its report on rationalization of branch authorization policy . The report observed that as digital adoption increases, traditional branch usage will eventually decline. "It is the general expectation that branch footprints would contract, as regulatory restrictions around opening of accounts and provision of banking services relax," the report said.
(Image: Indiatimes)