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Indian banks and ATMs are running on outdated systems, which are less sophisticated than what’s being used by their global counterparts. While this news on any other day would have made us angry, it has come as a saving grace amidst the hue and cry that global ransomware <a href="http://www.businessinsider.in/Brace-up-for-higher-impact-from-WannaCry-ransomware-worm-150-countries-already-adversely-affected/articleshow/58678817.cms">WannaCry</a> has created, shutting down many operations across the world. Neither the country’s apex bank, the <a href="http://www.businessinsider.in/RBIs-new-cash-tool-proposal-to-face-opposition-from-government/articleshow/58684627.cms">Reserve Bank of India</a>, nor any other leading bank has so far reported anything amiss in the Indian financial system. However, reports have come about one or two small banks in South India being affected, but even there the magnitude of the damage is not much. Also read: <a href="http://www.businessinsider.in/Hereshow-top-5-Indian-banks-use-technology/articleshow/48003107.cms">Here’s how top 5 Indian banks use technology</a> "We are closely monitoring the situation and have instructed the local IT teams of our bank to keep a watch on the systems in branches," a banker with the <a href="http://www.businessinsider.in/SBI-may-reduce-workforce-by-nearly-10-by-2019/articleshow/57839335.cms">State Bank of India</a> told <a href="http://economictimes.indiatimes.com/industry/banking/finance/banking/indian-banks-and-atms-had-a-narrow-escape-from-wannacry/articleshow/58689401.cms">ET</a>. "In some cases, the malware comes from external devices interacting with the banking networks. We are keeping that under check too." Also read: <a href="http://www.businessinsider.in/Your-money-isnt-safe-in-the-ATMs-Heres-why/articleshow/58666859.cms">Your money isn’t safe in the ATMs. Here’s why</a> The ransomware, known as <keyword id="6362093" type="UNKNOWN" weightage="100" keywordseo="wannacry">Wannacry</keyword>, has affected thousands of establishments across the globe, encrypting their data and asking for money to decrypt it. "ATMs usually do not save any financial transaction data. Hence, I do not think that machines will be particularly vulnerable to such malware attacks, which encrypt files," said the CEO of an ATM manufacturing company. Also, since ATM systems in India operate at a slower speed, the malware can be prevented from spreading. (Image source Stock pictures)

For the first time, outdated ATMs in India came handy to fight global malware WannaCry

<ul><li>Shortage first began in <keyword id="68884" type="LOCATION" weightage="20" keywordseo="Telangana">Telangana</keyword> and <keyword id="37102" type="LOCATION" weightage="20" keywordseo="Andhra-Pradesh">Andhra Pradesh</keyword>.</li><li>Currently ₹1,250,000 million is in circulation.</li><li>Politicians are also apparently stocking up on ₹2000 notes ahead of the next general elections in 2019</li></ul> It seems ATMs all over India are short on cash flow. According to reports, the shortage, which first began in Telangana and Andhra Pradesh, has now spread to Maharashtra, Gujarat, Bihar, Madhya Pradesh, Delhi and Bihar. Post <keyword id="3315394" type="PERSON" weightage="20" keywordseo="demonetisation">demonetisation</keyword>, people are understandably afraid that they will have to deal with snaking queues in front of ATM machines and banks. However, <keyword id="6355261" type="UNKNOWN" weightage="20" keywordseo="finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> has <a href="https://economictimes.indiatimes.com/news/politics-and-nation/atms-across-the-country-go-dry-heres-what-is-happening/articleshow/63795592.cms">taken cognizance of the matter</a> and has assured citizens that there is no shortage of funds in circulation. The reason given for this shortage is a sudden and unusual increase in the number of withdrawals. At the moment, ₹1,250,000 million is in circulation but the problem lies in the fact that it is not distributed evenly. Minister of State for Finance, SP Shukla told ANI, “We’ve cash currency of ₹1,25,000 cr right now. There is one problem that some states have less currency and others have more. The government has formed a state-wise committee and RBI also formed a committee to transfer currency from one state to other. It will be done in 3 days.” 
 
 
 
 
 
 
 
 
 
 
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 On 30 March, the <a href="https://timesofindia.indiatimes.com/city/hyderabad/all-you-need-to-know-about-the-cash-crunch-in-telangana-and-andhra-and-why-people-are-panicking/articleshow/63542093.cms">Times of India</a> reported that the bail-in clause in the proposed Financial Resolution and Deposit Insurance (FRDI) Bill, 2017, fuelled rumours that the money will not be safe in banks if the Bill became a law. This triggered an unusually high amount of withdrawals in Andhra Pradesh and Telangana. Though the government rubbished this claim, people unwilling to take a chance withdrew whatever they could. Also, the bank employees association alleged that politicians are stocking up on ₹2000 notes ahead of the next general elections in 2019. They fear that a spate of bank frauds may also have led to this.

ATMs in several Indian states are running short of cash

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

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’

ATMs in <keyword id="6357660" type="COMPANY" weightage="100" keywordseo="hindi">Hindi</keyword>-speaking states will now generate receipts in Hindi, along with English, as the Home Ministry has asked the <keyword id="6354335" type="CITY" weightage="100" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> to direct banks to procure only those ATMs that can print receipts in Hindi. 
 
The ministry has also instructed two major foreign suppliers of ATMs to upgrade the software in the existing ATMs to ensure printouts in Hindi. 
 The Department of Financial Services has written to the Home Ministry, saying the matter is under consideration. "We will be perusing this matter... the issue is that the printout of the receipt (from the <keyword id="48577" type="TECHNOLOGY" weightage="100" keywordseo="ATM">ATM</keyword>) should come in the language in which the transaction is being made," a Home Ministry spokesperson said. 
 At present, only ATMs procured by the <keyword id="63524" type="CITY" weightage="100" keywordseo="Union-Bank-of-India">Union Bank of India</keyword> from Diebold firm have the facility to print in Hindi. 
 
The ministry says such a situation runs foul of the government's official language policy. "The main reason of this problem is non-inclusion of such condition of printing in Hindi and regional languages while floating the tenders for procurement of ATMs by banks. As per the official language policy of the Union, the banks are required to procure only that equipment which has the facility of working both in English and Hindi. It is therefore requested that all banks be instructed to ensure that all ATM machines being procured in future should have the facility of doing transaction and printing in Hindi in Hindi-speaking states and all existing machines should be upgraded to have such a facility," the ministry wrote in identical letters to the RBI, the Finance Ministry and the Indian Banks Association.

Hindi Ke Achhe Din: ATMs To Generate Receipts In Hindi

The government is planning to convert local grocery shops and kirana stores into micro ATMs. In this regard, over five lakh fair price shops in India will be equipped with electronic point of sale (ePOS) machines and function as micro ATMs in two years. 
 
The Department of Financial Services (DoFS) has urged states to facilitate fair price shops and public distribution shops to double up as micro ATMs. 
 
The ePOS machines once made compatible to function as micro ATMs will enable people to withdraw money from their accounts against swiping of their debit cards. 
 Already, almost 1.6 lakh fair price shops, out of a total of over 5.4 lakh, have been fitted with ePOS machines that enable shops to give out subsidised rations in an automated way through <keyword id="3869489" type="UNKNOWN" weightage="20" keywordseo="Aadhaar-biometric-authentication-">Aadhaar biometric authentication.</keyword> 
 
"The subsidised ration shop in the village is the biggest point of interaction with the villagers as they frequent it. Hence, the decision has been taken to reconfigure the ePOS machines already installed in the 1.6 lakh fair price shops to make them micro ATM complaint and tell states to procure micro ATM compatible machines in future for rest of 3.8 lakh fair price shops,” a senior government official told ET. 
 
Presently, the Indian government has asked banks to deploy micro ATMs in rural areas. 
 
(Image: Reuters)

Your nearby grocery shop is going to become a micro ATM soon

The electronic and digital segments of the <keyword id="60655" type="ORGANIZATION" weightage="60" keywordseo="financial-markets">financial markets</keyword> have the potential to grow and expand in India, especially the cash-management system via <a href="http://www.businessinsider.in/searchresult.cms?query=ATM-debit+card+">ATM-debit card</a> usage. 
 The potential of <keyword id="3086675" type="UNKNOWN" weightage="100" keywordseo="ATM-debit-card">ATM-debit card</keyword> transactions is big in the cash-driven <a href="http://www.businessinsider.in/searchresult.cms?query=Indian+economy+">Indian economy</a> comprising of some 58 million <a href="http://www.businessinsider.in/searchresult.cms?query=small+and+medium+enterprises+">small and medium enterprises</a> (<keyword id="44779" type="COMPANY" weightage="60" keywordseo="SMEs">SMEs</keyword>), merchants and traders, said Ari Sarker, co-president for Asia Pacific at <keyword id="6368201" type="CITY" weightage="60" keywordseo="MasterCard">MasterCard</keyword>. 
 
He estimated that more than 520 million debit card users have been withdrawing an average of $370 billion cash from a 190,000 ATM network in one year. 
 
Moreover, the fact that India is 95% cash driven economy is a good sign and could boost more competition in the digital sector of the financial market, Sarker said regarding the current cash-based dealings among most of the SMEs, merchants and traders, who are members of the Confederation of All India Traders (CAIT). 
 
Moreover, a competitive environment would produce innovative products and services, especially in line with the government's initiatives which aggressively promote mobile banking among others. 
 
Presently, the Rupay Card of the National Payments Corp of India (NPCI) dominates the debit card market. But Sarker is of the view that the Indian market is ready for more players. 
 
"The greatest service the country can do is to encourage many players to play in this industry, because the more people you allow to play, the better are the products, services and level of competition," he said. 
 
The ATM volume makes up 87% of the entire market flow with the rest 13% done through <a href="http://www.businessinsider.in/searchresult.cms?query=e-commerce+">e-commerce</a> and point of sale. 
 
Going forward, SMEs, traders and merchants would have to increase the use of electronic banking transactions which would eventually support credit worthiness of their business among financial institutions. 
 
Looking forward to an open competition, Sarker reaffirmed MasterCard's presence in India with expansion plans. 
 
In May this year, MasterCard and CAIT launched a joint initiative to promote the digitization of payments among Indian traders, through knowledge sharing and training sessions across the country, in line with the government's ‘<a href="http://www.businessinsider.in/searchresult.cms?query=Digital+India">Digital India’</a> vision. 
 
(Image: Indiatimes)

A huge revolution is waiting to happen in the Indian financial market!

As we purchase more online and swipe cards more often, we are contributing to a cashless economy which is more efficient. But it comes with various risks like data misuse. Financial data is one of the most sought-after information by online criminals and there have been many <a href="https://www.businessinsider.in/biggest-data-breaches-of-2019-to-affect-india/articleshow/72465865.cms">data leaks in 2019</a> to show that no information is safe. As per a recent <a href="https://www.businessinsider.in/tech/news/4-lakh-indian-debit-and-credit-cards-are-selling-for-9-apiece-on-the-dark-web/articleshow/74028856.cms">report</a>, over 4 lakh Indian debit and credit cards were available on the <keyword id="1929208" type="PERSON" weightage="20" keywordseo="dark-web">dark web</keyword> for $9 each. You can read <a href="https://www.businessinsider.in/tech/news/here-is-what-happens-your-credit/debit-card-number-name-and-cvv-end-up-on-the-dark-web/articleshow/74058814.cms?src=hp_tech">here</a> how your financial data reaches the dark web and what happens to it. In this post, we will explain what steps you can take to prevent your debit and <keyword id="6368202" type="UNKNOWN" weightage="20" keywordseo="credit-card">credit card</keyword> information from reaching the dark web. How is financial data stolen Financial data can be stolen in <a href="https://www.businessinsider.in/tech/news/microsoft-dropbox-and-linkedin-are-the-biggest-targets-for-phishing-attacks/articleshow/72492998.cms">phishing attacks</a>, <a href="https://www.businessinsider.in/tech/news/airtel-data-breach-exposes-personal-data-of-32-crore-subscribers/articleshow/72428075.cms">data breaches</a>, skimming and other <a href="https://www.businessinsider.in/biggest-data-breaches-of-2019-to-affect-india/articleshow/72465865.cms">leaks</a>. Phishing attacks Phishing is aimed at collecting usernames, passwords and other personal information of users. It is usually done using an email or a message that contains a link or an attachment. The sender pretends to be a trustworthy entity such as a company or bank. Data breaches Data breaches occur when the user data stored with companies and websites is stolen using phishing, malware, or JS-sniffers. Under attacks like this, user data such as customer name, number, address and payment details are stolen. So, one should be careful about the entities that possess their basic information. Skimming In this, skimmers are attached to ATMs and card machines to steal your card details so they can access your account. They use the obtained details to clone your card and run up charges on your account. How to protect you debit and credit card from getting stolen Here are some tips that will help you to protect your financial information from getting stolen. Check ATM machines for skimmers <div type="image" title="ATM Skimmer" msid="74061252" hostid="261"></div>

 When you are at the at the ATM, you can check for skimmers in the following ways: <ul><li>Check the ATM card reader for tape or glue residue. </li><li>Check if anything is hanging from the ATM. </li><li>Wiggle the card slot for loose-fitting attachments. </li></ul>Monitor your transactions Regularly check your account statements and card reports for suspicious transactions. If you find even a small transaction that wasn’t done by you, immediately inform your bank and get the card blocked. Do not use shady websites If you are getting a deal that you think is too good to be true or a new website is offering you great deals, do not fall for such tricks and purchase items only from known and trustworthy websites. Be careful with emails Phishing attacks are often carried out by sending attachments or links via email. Avoid clicking on suspicious links and attachments and only click on emails from trusted sources. Do not share your card details If anyone calls you claiming that they work for your bank and ask you for your card details, do not provide any information about your bank account or cards. Call up your bank and share the phone number from which you received the call. See also: <a href="https://www.businessinsider.in/tech/news/here-is-what-happens-your-credit/debit-card-number-name-and-cvv-end-up-on-the-dark-web/articleshow/74058814.cms?src=hp_tech">Here is what happens when your credit/debit card number, name and CVV end up on the dark web</a> <a href="https://www.businessinsider.in/4-lakh-indian-debit-and-credit-cards-are-selling-for-9-apiece-on-the-dark-web/articleshow/74028856.cms">4 lakh Indian debit and credit cards are selling for $9 apiece on the dark web</a> <a href="https://www.businessinsider.in/biggest-data-breaches-of-2019-to-affect-india/articleshow/72465865.cms">Biggest data leaks of 2019 that hit Indians</a>

You Searched For "indian atm" and got 8 results

For the first time, outdated ATMs in India came handy to fight global malware WannaCry

BI India Bureau

ATMs in several Indian states are running short of cash

Kavita Majumdar

Withdrawing Money From ATMs Outside Home Branch Network May Cost You

BI India Bureau

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

Guest Author

Hindi Ke Achhe Din: ATMs To Generate Receipts In Hindi

BI India Bureau

Your nearby grocery shop is going to become a micro ATM soon

BI India Bureau

A huge revolution is waiting to happen in the Indian financial market!

BI India Bureau

How to stop your debit/credit card information from reaching the dark web

Rounak Jain

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