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Lockdown effect: Micro ATM transactions double to 1.13 crore per day

The development also shows the government’s push for digital technology has enabled people to access banking services even when the pandemic spread its tentacles.

ATM

With the lockdown hampering bank visits and use of ATMs, the Aadhaar-enabled payment system (AEPS) has received a fillip. The finance ministry’s department of financial services (DFS) tweeted on Monday that the average daily AEPS transactions doubled to 1.13 crore in the last 40-days of lockdown. A total of 43 crore transactions worth Rs 16,101 crore were made during the lockdown period, the DFS said in a tweet.

The increasing use of AEPS represents reversal of a declining trend seen in FY20. The development also shows the government’s push for digital technology has enabled people to access banking services even when the pandemic spread its tentacles.

AePS typically allows basic interoperable banking transactions at the point of sale (PoS or MicroATM) through the business correspondent of any bank by using Aadhaar authentication. From the customer point, the things that are required to complete a transaction are the name of the customer’s bank, Aadhaar number and fingerprint captured during enrolment.

AePS allows a customer to do half a dozen types of transactions, including cash withdrawal, cash deposit, balance enquiry and fund transfers among Aadhaar-holders.

Quoting National Payments Corporation of India, which runs the platform, The Economic Times reported on December 3, 2019 that the rate of growth in transactions through AePS in the April-October period of FY20 dropped by more than two-thirds from the year-ago period. These biometric-based transactions grew 10% to 20.8 crore in October 2019 from 18.9 crore in April, 2019, but dropped in November to 19.6 crore, the news paper said.

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