India ends incentives for new ATM, cash recycler installations
The Reserve Bank of India will not renew incentives intended to encourage banks to install ATMs and cash recyclers. The move is intended to bring about greater use of digital transactions in the country, a report by Economic Times said.
"With a view to promote a less-cash economy, the incentive schemes have been reviewed and it has been decided to discontinue going forward the incentives for installation of cash recycler machines and automated teller machines," a statement from RBI read.
Previously, deployers were allowed a fixed subsidy of 50 percent of the cost of the machine or 200,000 rupees ($3,104), whichever was less, in urban areas; in semi-urban and rural areas, the subsidy was 60 percent or 250,000 rupees ($3,880), whichever was less.
The subsidies were implemented in July 2016 and expired August 2017, the report said.
Loney Antony, managing director of Hitachi Payment Services told the Economic Times that, at any rate, " … I don't think this incentive was a big motivation for banks to install ATMs and CRMs."