Banks boosting ATM network after muted expansion in the last 2 years

Banks boosting ATM network after muted expansion in the last 2 years

Mumbai, Aug 29

Banks are ramping up their ATM (Automated Teller Machine) network after muted expansion during the last two years of pandemic.

This can be gauged from the fact that they added 2,796 ATMs in the first four months of FY23, against 1,486 in FY22 an 2,815 in FY21.

As at July-end 2022, Banks had a network of 2,17,857 ATMs, as per RBI data. Besides Banks’ ATMs, white label ATM operators had a network of 33,000 ATMs as at June-end.

Industry experts say there is a need for expanding ATM network further to serve the cash withdrawal requirements of Pradhan Mantri Jan Dhan Yojana beneficiaries (there were 46.30 lakh with outstanding balances of ₹1,72,848 crore as on August 17, 2022) and those receiving Direct Benefit Transfer (DBT) under various government schemes.

“This year looks quiet promising…During Covid-19 pandemic, there was not much deployment of ATMs because of physical restrictions. But now we are seeing lot of activity in terms of ATM installations,” Ravi B Goyal, Founder and Chairman & Managing Director, AGS Transact Technologies Ltd.

He underscored that both public and private sector banks have been floating RFPs (request for proposals) at regular intervals for ATM procurement.

“And we see that at the minimum there would be deployment of around 50,000 of ATMs and CRMs (cash recycler machines) together this financial year, going by the RFPs already floated and those in pipeline,” Goyal said, adding FY23 may see the highest ever ATM additions in a year.

That State Bank of India (SBI) alone is planning to procure 6,750 ATMs is probably an indicator of the banking system’s network expansion plans.

India’s largest bank has floated an RFP for procurement of 6,750 ATMs with support services for installation across the length and breadth of the country. The Bank said it may up the procurement size to 8,100 at its sole discretion.

Goyal observed that when Banks open new branches, they need at least one onsite ATM plus two-three offsite ATMs to take care of their customer base.

Published on

August 29, 2022

Source link

Share This

Leave a Reply

Your email address will not be published.