1. Demonetisation: What are micro-ATMs, how they function, and how will they help ease cash crunch?

Demonetisation: What are micro-ATMs, how they function, and how will they help ease cash crunch?

micro-ATMs are ideally meant to allow an individual to deposit or withdraw funds regardless of the bank in which their account is.

By: | Updated: November 14, 2016 1:36 PM
micro ATM, micro ATM machine, What are micro-ATMs, micro-ATMs function, cash crunch, cash crunch issue The basic transaction types that are normally supported by a Micro-ATM are; deposit, withdrawal, fund transfer and balance enquiry. (Image of IDFC Bank micro-ATM)

Micro-ATMs: In order to ease the cash crunch situation in the country following the massive demonetisation drive, the government is banking on micro-ATMs! The Department of Economic Affairs Secretary Shaktikanta Das has said that micro-ATMs will be set up across the country to tide over the cash crunch. This would particularly help address the problems that people are facing in rural and semi-urban areas, where the ATM network is not as strong currently. micro-ATMs are Point of Sale (PoS) devices, usually easy to hold in the hand.

micro-ATMs are ideally meant to allow an individual to deposit or withdraw funds regardless of the bank in which their account is. Varying from bank to bank, the micro-ATM allows for biometric identification (via Aadhaar), use of debit and RuPay cards, or the mobile phone number, to access your bank account. The basic transaction types that are normally supported by a Micro-ATM are; deposit, withdrawal, fund transfer and balance enquiry. According to Punjab National Bank, micro-ATMs offer an online interoperable, low-cost payments platform to everyone in the country.

Also read: You can’t withdraw Rs 2,500 from all ATMs, here’s why

IDFC Bank says that its micro-ATM can offer a host of features: e-KYC based account opening, account servicing, remittances, utility payments, account servicing etc, apart from withdrawal and deposit facility. The biggest advantage of a micro-ATM is the ease with which it can be deployed, without infrastructure that a normal ATM uses. micro-ATMs can be made available with a banking correspondent in the rural areas or your local paan and kirana wala.

Prime Minister Narendra Modi on November 8 announced one of the most major reforms in Indian economy. The government has rendered all old Rs 500 and Rs 1000 notes worthless, and a massive exercise is underway to replace the legitimate currency of people with legal tender money. From November 10, long queues outside banks and ATMs are a common sight as people struggle to replace their old currency notes and withdraw legal tender money. Amidst panic and growing anger, there is insufficient cash and infrastructure back up for such a mammoth exercise, and many people, especially in the rural and semi-urban areas are being inconvenienced.

The notes that are currently legal tender money include; Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 (new series) and Rs 2000. The government will soon come out with a new Rs 1000 note that will have enhanced security features. The massive demonetisation drive that has been announced is aimed at making existing black money in the domestic economy mussels, and also counter the threat from fake currency.

  1. B
    Bangalore citizen
    Nov 14, 2016 at 9:07 am
    Lets work towards better and cleaner India. Lets join our hands together and go through this tough times. Plz friends lets not make this political and fight amount ourselves. This move has way higher implications which will be unraveled to public in due course. Love you all
    Reply
    1. K
      kumar
      Nov 14, 2016 at 8:38 am
      Great work from Modiji. Indian is with you Modiji.
      Reply
      1. O
        OM SHANKAR
        Nov 14, 2016 at 10:45 am
        Really this is very bold step taken by our prime minister and indeed he is the only man having that courage to take such powerful and important decision.I am afraid of people especially oppositions political leaders saying it is a wrong decision.Hearing these opposition leaders i tried to understand public view and talked to some people and found they are in favor of Modi ji decision.I am unable to understand these political parties leaders put forward public opinion or their own views in order to create illusions and dramatize the entire nation in a wrong direction even it can go in against of economy of the nation.These political parties probably presents their own view point to get personal benefit.However this is foresightedness of our Prime minister and everyone will understand the value of this decision in near future and as said by most of the people i talked including me.
        Reply
        1. P
          PANKAJ SIBAL
          Nov 14, 2016 at 9:25 am
          In fact the idea is not as bad, but the implementation and administration has totally failed because of without applying minds of experts and done in haste to gain political mileage. And if in spite of these measures done till date, and if, black money, corruption, drugs, terrorism, price rise etc etc are not control, will H'onble PM will take responsibilities and resign for the m failure and immense hardships being suffered by poorest of poor, lower and upper middle cl and the citizen who are honest and pays taxes in the shape of VAT. Excise, Income Tax and what not????????????????
          Reply
          1. T
            Tutu Chanda
            Dec 18, 2016 at 1:02 pm
            Micro ATMs will allow customers to perform basic financial transactions which help the Indian peoples to become more smarter than earlier and also easier day to day life. Thank you so much Modiji for great leading our country and we'll give our efforts to making in digital India. You'll lead world one day.
            Reply
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