News

Banks in India roll out biometric ATMs for rural, unbanked areas

February 21, 2010

India-based mydigitalfc.com reports that the Reserve Bank of India has announced plans to roll out new guidelines on the business correspondent model that would facilitate greater spread of banking services to remote areas. Among the new guidelines, which aim to help financial institutions in the country reach unbanked and underbanked populations, are stipulations governing the use of biometrics at ATMs.

Punjab National Bank, in coordination with RBI's announcement, has launched a biometric ATM at Ranikhera village. The biometeric feature is expected to offer physical identification, such as impression of finger or the palm, at the ATM.

"We are working on a fresh set of guidelines for the business correspondents model that would help in greater financial inclusion. At present, the model is too restrictive and we are constantly examining the correspondent model to make it more operative," said H.R. Khan, executive director of RBI.

Several other banks, including Syndicate Bank, State Bank of India and Oriental Bank of Commerce, also are considering biometrics options.

According to mydigitalfc.com, approximately 65 percent of India's population does not have a bank account.