News

Indian entitlements program to require one million micro-ATMs

March 5, 2012

A task force led by Unique Identification Authority of India chairman Nandan Nilekani has recommended a payment platform using micro-ATMs to disburse cash subsidies and entitlements under government programs, said a news item at business-standard.com. Implementation of the plan will create a demand for approximately one million micro-ATMs.

Micro-ATMs will support functions such as deposits, withdrawals, fund transfers and balance enquiries. Built-in biometric systems will allow customers to conduct transactions using only their 12-digit unique identification (Aadhaar) number and fingerprint as identity. According to industry players, micro-ATM prices are Rs 10,000-20,000 (approx. $200–400) each.

Technology firms that have shown interest in Aadhaar payments include AMDL, Evolute, Geodesic, HCL, Ingenico, Integra, Nokia, VeriFone and Visiontek. All are manufacturers of handheld devices that can be used for micro-ATM processes. Most of these vendors are already working with banks on financial inclusion initiatives.

TPran Mehra, executive director for VeriFone India sales, said the rollout of micro-ATMs is a huge opportunity. “With UIDAI rolling out micro-ATMs, every partner in this program will need a device for payment … India has 550,000 ration shops and each will need at least two devices to capture user biometrics,” he said.

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