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Gearing up for commercial banking operations, <keyword id="48812" type="COMPANY" weightage="100" keywordseo="India-Post">India Post</keyword> has announced to soon launch about 1,000 ATMs. 
 "We plan to roll out 3,000 ATM by FY18, of which 1,000 will be in the near future," Tewari said. The <keyword id="59010" type="ORGANIZATION" weightage="100" keywordseo="Postal-department">postal department</keyword> is already running pilot ATMs in Chennai and Delhi. 
 The state-run India Post, which has one-and-a-half lakh post offices across the country, will make another effort to acquire <keyword id="140093" type="UNKNOWN" weightage="100" keywordseo="banking-licence">banking licence</keyword>. If it succeeds, it would mark a new beginning for the postal department. This would be its second attempt at this in two years. 
 
"We are waiting to see how the final guidelines fit in with the organisation. We have invested around Rs 5,000 crore in technology since 2012. Already 676 postal offices are connected through CBS. By March 2016, 25,000 offices will be on CBS (core banking solution)," said Kalpana Tewari, member (planning and technology), Department of Post. 
 India Post has long been trying to leverage its vast network of branches by offering banking services across the country, especially in villages, but didn’t succeed. When <keyword id="30067" type="ORGANIZATION" weightage="80" keywordseo="RBI">RBI</keyword> issued licenses last time, the postal department couldn’t explain how it would generate the required capital of Rs 500 crore.

ATMs For India Post?

The <keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> is considering if banks can charge a fee for using automated teller machines (ATMs) to withdraw money from outside the home bank network. Home bank network means ATMs of the bank in which you have an account. 
	The Indian Banks’ Association (IBA) has proposed that customers who withdraw money from other banks’ ATMs should be charged. <o:p></o:p>

	A Krishnakumar, managing director, the <keyword id="6354731" type="CITY" weightage="100" keywordseo="State-Bank-Of-India">State Bank of India</keyword>, said, “The IBA has made a request to the RBI to rationalise ATM charges in urban and metro areas.” <o:p></o:p>

	If the proposal is accepted, customers will have to pay a fee for using ATMs other than the home branch network from the very first transaction. At present, a customer is allowed five free transactions in a month at other bank ATMs. This charge could be Rs 20 per transaction. <o:p></o:p>

	The issue was first raised last year after banks were asked to provide security at their ATMs following the attack on a woman in an ATM in Bangalore. <o:p></o:p>

	India’s largest bank, the State Bank of India, has more than 42,000 ATMs. According to Krishnakumar, the bank’s ratio of ATMs to debit cards is 1:2,500. The corresponding average for other banks is 1:1,700. <o:p></o:p>

Withdrawing Money From ATMs Outside Home Branch Network May Cost You

<ul><li><keyword id="711967" type="ORGANIZATION" weightage="20" keywordseo="United-Bank-of-India-ATM">United Bank of India ATM</keyword> dispenses <keyword id="6359321" type="UNKNOWN" weightage="20" keywordseo="fake-currency">fake currency</keyword>.</li><li>So far three people have withdrawn counterfeit notes.</li><li>Notes were labeled ‘Churan Lable’, ‘Bhartiya Manoranjan Bank’ and ‘<keyword id="4206234" type="ORGANIZATION" weightage="20" keywordseo="Children-Bank-of-India">Children Bank of India</keyword>’.</li></ul>Accidentally picking up a fake note from your grocery store is a world apart from getting <keyword id="6364565" type="UNKNOWN" weightage="20" keywordseo="fake-notes">fake notes</keyword> when you withdraw money from an ATM. Unfortunately, this is exactly what happened to visitors of an United Bank of India ATM in <keyword id="6356144" type="LOCATION" weightage="20" keywordseo="bareilly">Bareilly</keyword> district. A <a href="https://www.news18.com/news/india/atm-dispenses-churan-lable-rs-500-notes-in-bareilly-video-goes-viral-1726829.html" data-type="tilCustomLink">video</a>, that’s now gone viral, shows the ATM dispensing Rs 500 notes labelled ‘Churan Lable’, ‘Bhartiya Manoranjan Bank’, and ‘Children Bank Of India’. This wasn’t a one off incident with just one individual, but happened to three different people who came to withdraw money from the ATM. And, since the video’s gone viral, everyone seems to asking some intense questions about how these notes found their way into the ATM in the first place. The discrepancy was noticed when the Subhashnagar ATM dispensed fake currency on Sunday evening to a retired employee of the health department, Ashok Kumar Pathak. After withdrawing Rs 4,500, he realised that the notes were counterfeit instead of the genuine article. Surprised at such an occurrence, Pathak decided to ask around. During this process he found that he wasn’t the first to be duped by this ATM. Pravin Uttam, a resident of Rajeev Colony, has also been the victim of two Rs 500 notes that weren’t authentic. Earlier in February, a similar incident <a href="http://zeenews.india.com/kanpur/axis-bank-atm-dispenses-fake-notes-of-rs-500-in-kanpur-probe-ordered-2080252.html">occurred</a> in Kanpur at an Axis Bank ATM where the notes had ‘Children Bank of India’ printed on them. The year before, an SBI ATM in South Delhi faced the same problem. What does such an event state about the state of bank security in the nation? The banking sector has already been under alot of heat due to the Nirav Modi scandal and the negligence on their behalf. Is fake currency coming out of ATMs another scandal waiting to happen?

Video of a ATM dispensing fake cash in a small town in Uttar Pradesh has gone viral online

ATMs or Any Time Money in common parlance and <keyword id="341587" type="POSITION" weightage="20" keywordseo="Automated-Teller">Automated Teller</keyword> Machines in the bankers’ patois have revolutionized the <keyword id="34494" type="UNKNOWN" weightage="20" keywordseo="banking-industry">banking industry</keyword> over the last 45 years; since the commissioning of the first ATM by <keyword id="2593947" type="ORGANIZATION" weightage="20" keywordseo="Chemical-Bank">Chemical Bank</keyword> in Rockville Center, New York. By enabling banks to deliver customer convenience through operational efficiency and making them reap the benefits of employee cost reduction in return, ATMs have mechanized the process of account management, cash &amp; cheque deposits as well as facilitated value added services such as: bill payments, mobile phone recharges, payment of insurance premiums, mutual fund scheme purchases besides inter-account money transfers without the intervention of human tellers. 
 With Reserve <keyword id="6355303" type="CITY" weightage="20" keywordseo="Bank-of-India">Bank of India</keyword> (RBI) data revealing the presence of over 167,000 ATMs across India as on June 2014, ATM density has witnessed more than a two-fold increase from 25.4 in 2011 to stand at 54.7 ATMs per 1,000 sq kms at present. Even the number of ATMs accessed per 1 lakh people has increased from 8.9 in 2011 to 13.1 in 2014. However commendable these numbers may be, they pale into insignificance when compared to developing countries such as China (49.6), Brazil (119.6), South Africa (60) and Thailand (78), which have notched up better scores of on the ATM access front. 
 
75% of India’s ATM infrastructure caters to only 45% of banking customers based in Tier-I and Tier-II cities. It is with an objective to proliferate ATMs as delivery channels for banks, did the RBI authorize non-banking entities to set up White Label ATMs (WLAs), mandating them to deploy 67% of their machines in rural and 33% in urban locations. Though seen as major tools for customer acquisition and servicing by sponsor banks, WLAs would indeed enable banks to save on ATM maintenance and servicing costs. However, skepticism prevails on how the non-banking entities operating the WLAs can handle due diligence and the reconciliation process in the event of problems faced by customers. 
 
Despite there being close to 400 million debit cards, the year 2013 registered more than 6 billion cash withdrawal transactions from ATMs worth Rs 184 lakh million. The low penetration of Point of Sale (POS) terminals of 49.7 per 1 lakh population can be adduced as a reason, but largely being the preferred mode of payment, both for Peer to Peer (P2P) and Peer to Merchant (P2M) transactions, cash still rules the roost. 
 This is validated by the high Cash to <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> ratio of 13% as against the global norm of 2.5-8%. The year 2013 witnessed 20 billion bank notes issued in India out of the 154 billion issued globally. The fact that India withdraws more than 75% of notes in circulation every year proves our predilection to cash, which is largely accessed through teller counters at banks or via ATMs. Banks in India have taken cognizance of the strong cash culture prevailing in the country. And hence, ATM outlets have been growing at a steady rate of 25% year on year and are expected to have a presence of 2.3 lakhs by 2015 according to a AM Mindpower Solutions report. 
 However, more number of ATMs doesn’t necessarily translate to an increase in profitability for banks. From a feasibility perspective, an ATM machine would cost more than Rs 50,000 a month for a bank taking into account the costs of electricity, real estate, maintenance, technology upgradation and security costs. Since April 2009, increased ATM usage was encouraged by allowing ATM and Debit card holders to withdraw cash from any ATM irrespective of the banks in which they held their accounts. The resultant high cash withdrawal rates that ensued meant higher ATM servicing costs due to frequent cash replenishment requirements leading to the very premise of ATMs being cost saving tools to be brought to question. Add to it the inter-bank charges for withdrawals made by non-bank customers as well as the cost of manning the ATM with a security guard over 3 shifts, which increases the total costs by Rs 40,000 a month per ATM as per the <keyword id="109886" type="ORGANIZATION" weightage="20" keywordseo="Indian-Banks-Association">Indian Banks Association</keyword>’s estimates. 
 If we take Rs 10 per transaction as the landing cost per ATM usage, we can extrapolate a figure of 9,000 transactions per month per ATM as the threshold for breaking even. Given that average transactions number 150 per day per ATM according to <keyword id="394949" type="CITY" weightage="20" keywordseo="National-Payments-Corporation">National Payments Corporation</keyword> of India (NPCI), 4,500 transactions per month per ATM would cover 50% of the total costs. 
 
The writing is on the wall. The recent RBI guidelines of reducing free transactions in other bank ATMs to three per month in six metropolitan cities, along with banks being allowed to levy charges of maximum Rs 20 beyond five transactions (financial &amp; non-financial) per month at own-bank ATMs are aimed at reining in these burgeoning costs. It also serves as an intelligent way of disincentivising the use of cash and promoting electronic payments – warming the cockles of the heart of non-cash payment services companies. A net banking transaction works out to be a fifth of the cost incurred on an ATM transaction, while transacting via the mobile banking channel would work out to be much lower. 
 
Discouraging the usage of ATMs would prove beneficial even from a security perspective. Newspapers and online portals are awash with news stories everyday of how ATMs across India have become hubs of nefarious activities. Increasing incidents of larceny, assault, fraud and ingenious ways of siphoning money through data skimming of cards are making security a major risk factor for people visiting the ATMs to withdraw cash. 
 
What next? Being a cost-conscious lot, Indians would now gradually gravitate towards non-cash payment modes. The limited penetration of Point-of-Sale (POS) terminals, with less than 11 lakh out of 150 lakh merchants across India owning one offers limitations for card payments. The ubiquitous mobile phone with Internet access enabled, offers itself as the most potent and user-friendly mode of making payments. For one, it is personal and it completely eliminates the security risks associated with cash withdrawals at ATMs. Most importantly, it serves as a more cost-effective tool for meeting RBI’s long-term goal of financial inclusion. 
 
What remains to be seen however, is whether Indians have the confidence to dial M for Money! 
 
Image: thinkstock 
 
About the author: The article is written by Mr Kumar Karpe, CEO, TechProcess Payment Services Ltd.

ATMs Are Passé. Now It’s Time To Use ‘Any Time Mobile’

<ul><li>The Home Ministry has ordered a clampdown on all <keyword id="37885" type="ORGANIZATION" weightage="20" keywordseo="Cash">cash</keyword> refilling operations at ATMs after 9PM in cities and after 6PM in rural areas. </li><li>The ruling is set to go into effect on 8 February 2019. </li><li>The move follows a rising trend of frauds and thefts of ATMs and cash vans. </li></ul> India is no stranger to cash shortages. The image of long queues outside ATMs took root in the national conscience following the government’s decision to withdraw all 500 and 1000-rupee notes from circulation in November 2016. Earlier this year, in April 2018, a number of ATMs across the country in states such as Bihar, Gujarat, Uttar Pradesh and Andhra Pradesh were reported to be running dry owing to the poor management of cash flow by banks and the recalibration of ATMs to facilitate the supply of new <keyword id="6378917" type="UNKNOWN" weightage="20" keywordseo="currency">currency</keyword> notes. And now? Things could likely get worse next year since the Home Ministry of India has ordered a clampdown on all cash refilling operations at ATMs after 9PM in cities and after 6PM in rural parts of the country. The clampdown is stricter in areas affected by Naxalite violence, which will see cash reloading operations halted after 4PM. The ruling is set to go into effect on 8 February 2019. The move follows a spate of frauds and <keyword id="47717" type="PERSON" weightage="20" keywordseo="Theft">theft</keyword>s of ATMs and cash vans. Everyday, thousands of armoured vans travel across the country reloading ATMs. At night, they become particularly vulnerable to instances of theft, especially in areas which are sparsely populated. In the year that ended March 2018, there were <a href="https://www.theweek.in/news/biz-tech/2018/08/03/bank-robbery-theft-cases-increase-five-years.html">972 cases</a> of theft and robberies recorded, a 65% increase from the previous year, culminating in a total loss of ₹449 million. The states of Bihar, West Bengal and Uttar Pradesh comprised a bulk of these cases. The notification from the Home Ministry laid down a number of instructions for the transportation of cash. All vans must collect cash from banks in the first half of the day and should have two private security guards, one driver and two <keyword id="48577" type="TECHNOLOGY" weightage="20" keywordseo="ATM">ATM</keyword> officers - all of whom should have had thorough background checks. Furthermore, a van has to be fitted with a GPS tracker as well as a CCTV and can’t transport more than ₹50 million. And finally, at least one security guard is to be sitting in the cash van at all times. Not enough? India’s ATMs aren’t only vulnerable to theft. A fair portion of them are easy targets for <keyword id="38935" type="PERSON" weightage="20" keywordseo="Fraud">fraud</keyword> due to their outdated software, something that the new cash refilling policy doesn’t address. Card details can be easily extracted from ATMs through malware programmes and skimming devices. Last month, a discussion in Parliament revealed that <a href="https://www.businesstoday.in/current/economy-politics/rbi-74-per-cent-public-sector-banks-atm-vulnerable-frauds/story/280507.html">74%</a> of the ATMs in India are running on old operating systems. As per a notification released earlier in the year, the Reserve Bank of India has ordered all banks to upgrade the software at their ATMs and implement anti-skimming protocols by next year.

India is freezing all cash refilling ops at ATMs after a certain time to prevent theft

The Reserve Bank of India (<a href="http://www.businessinsider.in/GST-to-have-macro-economic-impact-RBI/articleshow/58655973.cms">RBI</a>), country’s apex bank, has directed that India’s banks shall operate their ATM networks only after machines receive a Windows update so that they can be protected from <a href="http://www.businessinsider.in/Brace-up-for-higher-impact-from-WannaCry-ransomware-worm-150-countries-already-adversely-affected/articleshow/58678817.cms">WannaCry ransomware</a>, a malware impacting systems across the world. <keyword id="6362093" type="UNKNOWN" weightage="100" keywordseo="wannacry">WannaCry</keyword> has taken down computer systems all across the globe, encrypting up critical data and demanding bitcoins as ransom for decryption. <a href="http://www.businessinsider.in/Cash-crunch-is-back-ATMs-are-dry-yet-again/articleshow/58023148.cms">ATM machines</a>, almost all of which run on Windows software with 60% having outdated <keyword id="151011" type="UNKNOWN" weightage="100" keywordseo="Windows-XP">Windows XP</keyword>, are being seen as vulnerable for this attack However, <a href="http://www.businessinsider.in/Microsoft-has-a-funky-new-mantra/articleshow/58614507.cms">Microsoft</a> has stated that it has developed and released a special update for <a href="http://www.businessinsider.in/Microsoft-Is-Still-Making-Millions-From-Windows-XP/amp_articleshow/33784661.cms">Windows XP</a> even though it is no longer serviced by the company. However, ATM operators opine that customers don’t need to worry about their data or money. "The objective of ransomware is to shut down critical information in networks and prevent access to this data. In the case of ATMs there is no data stored in the machine. Neither is there storage of any kind of logic that will block transactions. Even if a machine were to get affected it can be reformatted and put to use immediately," said Manohar Bhoi, president (technology) at Electronic Payments and Services.

RBI directs banks to open ATMs only after software update to prevent ransomare malware

You all have experienced how most ATM outlets you visited are running out of money and you got utterly frustrated by <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword>’s demonetisation policy. Well don’t expect an immediate respite from the problem. You need to get immuned to the treatment. <a href="http://www.businessinsider.in/Heres-why-most-ATMs-are-out-of-cash-and-would-continue-to-be-so-till-a-few-days/articleshow/55398257.cms">Here's why ATMs are running out of money</a> 
 
The supply of currency through ATMs will continue to be for limited hours as most machines will be disbursing only Rs 100 notes. Monday, being Guru <keyword id="65286" type="UNKNOWN" weightage="20" keywordseo="Nanak-Jayanti">Nanak Jayanti</keyword>, there will be extra pressure on ATMs as the banks will be shut. Even though ATMs were cleared of old notes, overall shortage will keep continuing. 
 "We will recalibrate ATMs for the new currency notes on Monday. This will have to be done physically with each machine and in two to three weeks we should be able to finish work on a large number of ATMs," <keyword id="1666548" type="UNKNOWN" weightage="20" keywordseo="Navroze-Dastur">Navroze Dastur</keyword>, MD, <keyword id="270244" type="COMPANY" weightage="20" keywordseo="NCR-India">NCR India</keyword> told The Economic Time. NCR has installed over one lakh ATMs in India and also operates ATMs on behalf of banks. 
 <keyword id="55942" type="PERSON" weightage="20" keywordseo="Rajiv-Anand">Rajiv Anand</keyword>, executive director of <keyword id="6355975" type="CITY" weightage="20" keywordseo="Axis-Bank">Axis Bank</keyword> told the ET that the availability of the new Rs 500 notes will be a big relief as the Rs 2,000 notes won't help in everyday transactions, resulting in a higher demand for Rs 100 notes. Axis Bank, meanwhile, has waived surcharge on debit card payments made at petrol pumps until November 25.

ATMs will not show much hope until end of this month. Here’s why

There is a good news for the <keyword id="6354731" type="CITY" weightage="100" keywordseo="State-Bank-Of-India">State Bank of India</keyword> (<keyword id="13222" type="CITY" weightage="100" keywordseo="SBI">SBI</keyword>) customers who maintain a balance of more than Rs 25,000. SBI customers can now avail unlimited ATM transactions at its home ATM if they maintain this balance in their account. 
 
However, those customers who have a balance of less than Rs 25,000, will be allowed four free transactions from its home ATM. For third-party ATMs, the number of transaction has been limited to three. 
 In August, the Reserve Bank of India (<keyword id="30067" type="ORGANIZATION" weightage="60" keywordseo="RBI">RBI</keyword>) had said, “The number of free ATM transactions for savings bank account customers at other banks' ATMs would be reduced from the present five to three transactions per month (inclusive of both financial and non-financial transactions) for transactions done at the ATMs located in six metro centres – in Delhi, Mumbai, Chennai, Bangalore, Kolkata and Hyderabad. A fee of up to Rs 20 would be charged for using ATMs beyond the permitted number of transactions, it had said. 
 
This directive comes into effect from November 1, 2014. 
 
“Banks are also free to decide on the combination for metro and non-metro locations of free transactions while adhering to minimum requirements,” the RBI notification said.

You Searched For "atm india" and got 8 results

ATMs For India Post?

BI India Bureau

Withdrawing Money From ATMs Outside Home Branch Network May Cost You

BI India Bureau

Video of a ATM dispensing fake cash in a small town in Uttar Pradesh has gone viral online

Prabhjote Gill

ATMs Are Passé. Now It’s Time To Use ‘Any Time Mobile’

Guest Author

India is freezing all cash refilling ops at ATMs after a certain time to prevent theft

Dilsher Dhillon

RBI directs banks to open ATMs only after software update to prevent ransomare malware

BI India Bureau

ATMs will not show much hope until end of this month. Here’s why

BI India Bureau

SBI Customers Can Now Avail Unlimited ATM Transactions

BI India Bureau

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