News

Some Indian bankers express interest in advanced ATM functionality

May 5, 2004

INDIA - Some financial institutions are interested in advanced functionality at ATMs, according to a Financial Express report.

Ticketing, mobile top-ups, telephone and electricity bill payments, mutual fund investments and advertising on receipts are mentioned as possibilities.

The story quotes KS Bajwa, Punjab National Bank's deputy general manager: "If optimization of ATM usage is to be achieved, they should not be limited to cash withdrawals. We need to add more functionality to the ATMs. I also believe that one should not set up ATMs everywhere--the economy of tomorrow will primarily run on cards, not on cash."

Added Hemant Kaul, UTI Bank's president-retail banking, "A critical aspect of ATM business is 'carding'. You might install so many ATMs, but it cannot generate cash on its own. It is critical to ensure that every customer has a card."

India's current installed base of ATMs is estimated at 11,000 units and has been growing at a rate of more than 70 percent over the last three years.

While most bankers believe that ATMs will need to offer more than just cash withdrawal, there are some who disagree, according to the Financial Times.

"I believe we are stuck with cash, and cash will drive the market," said Ajay Swaroop, State Bank of India's (SBI) general manager. "As far as value-added services are concerned, additional services will only crowd out ATMs and add to unnecessarily long queues outside ATM booths."