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Parliament panel asks RBI to fix dysfunctional ATMs, install more machines

The panel also noted that RBI's remonetisation drive has not augmented/resolved the cash supply to ATMs in rural/semi-urban areas, forcing shutdown of many ATMs

Press Trust of India  |  New Delhi 

ATM. Photo: Reuters

A parliamentary panel has asked the Reserve Bank to address the problem of perpetually dysfunctional so as to avoid any situation of forced cash crunch.

The Standing has also asked banks to install adequate number of The panel tabled its report in Parliament last week.

As per a data of RBI, there were 2,21,492 (ATMs) in the country as at September-end 2018.

These include 1,43,844 of public sector banks, 59,645 ATMs of private banks and 18,003 of foreign banks, payments banks, small fiance banks and White Label ATMs (WLAs), which are owned and operated by

"As digital transactions have not become anywhere near universal, the committee would urge upon RBI to pursue the lingering problem of dysfunctionality as well as shortage of ATMs vigorously with banks, while ensuring the economic viability of ATMs for all stakeholders, so that a forced cash crunch is not imposed on the public," the report said.

The panel headed by senior leader M Veerappa Moily also noted that RBI's remonetisation drive has not augmented/resolved the cash supply to ATMs in rural/semi-urban areas, forcing shutdown of many ATMs.

The committee has expressed concern that "there are just not enough" ATMs being installed or added to cater to the rising demand for cash in an expanding economy, even as more and more debit cards are being issued and large number of accounts opened by banks.

ATMs have become an important channel for withdrawing money even after the close of hours. Digital transactions are also catching up.

Besides ATMs, basic services are provided by business correspondents through their micro ATMs.

First Published: Sun, January 06 2019. 10:46 IST
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