News

Indian banks get approval for ATM ads

April 16, 2012

The Indian Finance Ministry now allows banks to advertise on ATM screens, said an article at thehindubusinessline.com. Ads may promote only the banks own products and services or those of brokerages, mutual funds, insurance companies and pension funds.

According to a notification issued by the ministry, ads may be shown during the 10–20 second wait that occurs while an ATM network processes a customer's request for cash.

Banks can bring down the cost per transaction by generating some revenue through advertisements, a senior banking official told the Hindu Business Line. “Thanks to the five free ATM transactions per month [limit] at other bank ATMs, other banks' customers are using our ATMs for transactions," the official said. “If we can showcase our products and services to them through advertisements, we can expand our customer base."

Retail banks have asked the Reserve Bank of India for guidance on how to implement an ad program, The Hindu Business Line said. Some bankers worry that when customers see the ad onscreen they will assume that their transaction has failed or, the article said, "[I]f the customer is riveted to an advertisement, he may even forget to collect cash."

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