The Hush Post|20:30 pm|1-min-read
Approximately half of the Automated Teller Machines (ATMs) may shut down by March 2019. This step has been taken by the Confederation of ATM Industry (CATMi) on account of recent regulatory guidelines for ATMs hardware and software upgrades, recent mandates on cash management standards and the Cassette Swap Method of loading cash.
According to a CATMi Director, India has approximately 2,38,000 ATMs. Out of these around 1,13,000 ATMs including 1,00,000 off-site. Apart from this, more than 15,000 white label ATMs are expected to down their shutters.
“This would severely impact millions of beneficiaries under the Pradhan Mantri Jan Dhan Yojana as they withdraw subsidies in form of cash through ATMs besides urban centres, resulting in long queues and chaos akin to post-demonetisation,” said Mr Balasubramanian.
However, the closure of ATMs may result in considerable job losses. These job losses would be harmful to financial services in the economy, said CATMi.
“Moreover, as per official data, almost 30 per cent of bank account holders in the country regularly use their ATM cards. Others prefer cash transactions. There are problems of infrastructure and connectivity which hamper growth of ATMs network,” Balasubramanian said.