A recent press report said that the Finance Ministry has considered distributing automated teller machines (ATMs) district – wise in order to make the ATMs viable for banks. The Ministry has felt that this move would reduce the cost of setting up the ATM infrastructure as well as it also guarantees the distribution. The banks have welcomed this kind of ATM infrastructure sharing model where the license for setting up ATMs could now be distributed to the banks or service provider’s district – wise and the sharing of ATM infrastructure would be based on fee.
According to Ms.Shubhalakshmi Panse, Executive Director of Vijaya Bank distributing ATMs district – wise would be better and some banks have suggested the idea of white – label ATMs which are not owned by the banks but are outsourced completely to the service providers. But the Reserve Bank of India did not approve the setting up of White – label ATMs in India.
Few bankers said that the Government has given the options of purchasing their own ATMs and outsourcing all other facilities or completely outsource ATM services or to own the entire ATM operations.
According to Mr. A.S.Bhattacharya, Chairman and Managing Director of Bank of Maharashtra the basic motive of setting up district – wise ATMs is to reduce cost and avoid duplication of efforts. Besides it would ensure that the rural areas are benefited.
Recently banks have asked the RBI to take a break from its monetary tightening cycle which has made home loan and other loans very expensive.