BENGALURU: Karnataka ranks 3rd when it comes to ATM density with 29 ATMs according to lakh inhabitants after Delhi (52/lakh) and Tamil Nadu (35/lakh) respectively. The ATM footprint in the state is a few steps forward of Maharashtra (23/lakh) and Andhra Pradesh (25/lakh) and means forward of Jharkhand (11/lakh) and Chhattisgarh (13/lakh).
Rural Karnataka is underserved when in comparison to Bengaluru town, having 12 ATMs/lakh inhabitants, a some distance cry from the latter’s 52 ATMs/ lakh, as according to information from the Confederation of ATM Industry.
Demonetisation has dealt an enormous blow to the profitability of the ATM business. “In rural Karnataka, people commute a minimum of 15-20km to reach the closest ATM. Still, there’s no surety that the machines could have money. While it is commercially viable for us to load money in towns like Bengaluru which clock higher transactions, in rural spaces we will handiest load 2-Three times a week. And there’s the cost hooked up to transporting money and the hobby being paid out on idle money,” stated Okay Srinivas, member, CATMI and CEO of BTI Payments.
India has 18 ATMs according to lakh inhabitants
India, on an average, has fewer ATMs in comparison to a number of different international locations. India has 18 ATMs according to lakh of the inhabitants, considerably lower than international locations like China (63), Brazil (81), Japan (107) and Australia
(132). ATM penetration in India is also skewed in opposition to metro and concrete centres the place there are 52 ATMs according to lakh inhabitants, in comparison to rural spaces, the place there are handiest Five-11 ATMs according to lakh of the inhabitants. With banks pressured via NPAs and wired property, ATM expansion has not higher up to now three years. Between March 2015-March 2018, put in ATMs saw an increase of 46% in metro and concrete centres, and 22% in rural spaces.
“We’re seeing an enormous call for in rural spaces as a result of the large increase in Jan Dhan Yojana accounts and rapid distribution of RuPay playing cards. With hundreds of thousands of rural consumers now having debit playing cards, there's call for however inadequate supply," says Srinivas.
“We’re seeing ATM transactions increase in tier-2, tier-3 towns and rural spaces. But banks nonetheless shy clear of ATM expansion without a minimum of 3,000 playing cards in the house. They need 150 ATMs transactions according to day to make it commercially viable. With banks reeling under NPAs, ATM expansion is their ultimate precedence,” stated V Balasubramanium, president of ATMs and payment programs in FSS.
Banks, meanwhile, are calling for an increase of the interchange fee. "Currently, the interchange fee is Rs 15 according to transaction. And it has not higher up to now 3-Four years in spite of costs having shot up. SBI has the most important ATM network in the nation and in probably the most remote places. With so many other-bank consumers the use of our ATMs, it is in point of fact a drain on our sources to have the interchange at Rs 15, as a substitute of Rs 18 or extra,” stated a DGM of SBI.
Rural Karnataka is underserved when in comparison to Bengaluru town, having 12 ATMs/lakh inhabitants, a some distance cry from the latter’s 52 ATMs/ lakh, as according to information from the Confederation of ATM Industry.
Demonetisation has dealt an enormous blow to the profitability of the ATM business. “In rural Karnataka, people commute a minimum of 15-20km to reach the closest ATM. Still, there’s no surety that the machines could have money. While it is commercially viable for us to load money in towns like Bengaluru which clock higher transactions, in rural spaces we will handiest load 2-Three times a week. And there’s the cost hooked up to transporting money and the hobby being paid out on idle money,” stated Okay Srinivas, member, CATMI and CEO of BTI Payments.
India has 18 ATMs according to lakh inhabitants
India, on an average, has fewer ATMs in comparison to a number of different international locations. India has 18 ATMs according to lakh of the inhabitants, considerably lower than international locations like China (63), Brazil (81), Japan (107) and Australia
(132). ATM penetration in India is also skewed in opposition to metro and concrete centres the place there are 52 ATMs according to lakh inhabitants, in comparison to rural spaces, the place there are handiest Five-11 ATMs according to lakh of the inhabitants. With banks pressured via NPAs and wired property, ATM expansion has not higher up to now three years. Between March 2015-March 2018, put in ATMs saw an increase of 46% in metro and concrete centres, and 22% in rural spaces.
“We’re seeing an enormous call for in rural spaces as a result of the large increase in Jan Dhan Yojana accounts and rapid distribution of RuPay playing cards. With hundreds of thousands of rural consumers now having debit playing cards, there's call for however inadequate supply," says Srinivas.
“We’re seeing ATM transactions increase in tier-2, tier-3 towns and rural spaces. But banks nonetheless shy clear of ATM expansion without a minimum of 3,000 playing cards in the house. They need 150 ATMs transactions according to day to make it commercially viable. With banks reeling under NPAs, ATM expansion is their ultimate precedence,” stated V Balasubramanium, president of ATMs and payment programs in FSS.
Banks, meanwhile, are calling for an increase of the interchange fee. "Currently, the interchange fee is Rs 15 according to transaction. And it has not higher up to now 3-Four years in spite of costs having shot up. SBI has the most important ATM network in the nation and in probably the most remote places. With so many other-bank consumers the use of our ATMs, it is in point of fact a drain on our sources to have the interchange at Rs 15, as a substitute of Rs 18 or extra,” stated a DGM of SBI.
K'taka has 3rd highest ATM density after Delhi & TN
![K'taka has 3rd highest ATM density after Delhi & TN]()
Reviewed by Kailash
on
May 25, 2018
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