This refers to the report "SBI says ATM operations in losses, supports idea charging customers" (January 13). It is common knowledge that banks discourage account holders to withdraw small amounts of cash (within the limits allowed for ATM withdrawals - Rs 15,000 to 20,000 a day). The costing methodology for arriving at profit and losses in ATM maintenance should factor in, inter alia, the low interest paid on savings bank accounts from which ATM withdrawals are made, and the savings in costs when transactions are managed through machines.
Another aspect the Reserve Bank of India and banks should consider is the need for several ATMs in the same locality or in the same shopping area, maintained by different banks. Since the current infrastructure and technology for ATMs does not leave much scope for "competition" among service providers, pooling of resources and having ATMs based on need could be thought of. If there are ATMs working within short distances, say 100 meters or so, bringing them together under one shelter will save costs on rentals and security.
M G Warrier Thiruvananthapuram
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