Mumbai, June 28: The RBI Deputy Governor, Dr K.C. Chakrabarty, brought the house down saying that he never used ATMs after hearing the number of complaints made by customers. While the ATM machine was one of the greatest innovations in the last 50 years in terms of technology products, it did have drawbacks. “It facilitates faster dispensation of cash provided the transaction is successful. Though there have been 98 per cent successful ATM transactions, there have been no failed transactions at a branch. So where is the evolution?” he exclaimed. “The problem faced by the aam aadmi today is ‘terrorisation of ATMs’. Some (ATM machines) will swallow your cards, some require only swiping; some require keys and some do not, some provide cash on the tray while some do not, and some do not return money…,” he quipped.
HBL
1 comment:
Let us assume that Dr Chakrabarty has said this just to focus on the need for ATM reforms. Still, RBI should revisit its policy stance on ATMs. Allowing White Label ATMs to be operated by non-banking entities was done in haste, which should be put on hold till the architecture stabilizes across banks. It is a fact that now ATMs have reached only cities and major towns and even where ATMs have been opened in smaller towns, service provided is not upto the mark. But the way in which ATMs are being opened in cities, there is a case for pooling of resources and infrastructure to ensure that existing ATMs have enough business and competition doesn’t result in multiple ATMs at the same point leading to waste of scarce resources. As technology has provided an opportunity to save on costs, it should be examined if separate ATMs are necessary for each bank operating in close-by buildings in cities. Once there is consensus on consolidation from this angle, several ATMs will become free which can be re-positioned in other locations. Banks should be encouraged to open ATMs in smaller places where bigger branches (in terms of number of customers) exist. This would be more cost-effective and ensure more reliable service. Another option worth considering is fast-tracking the proposal of Department of Posts to open ATMs and networking them with banks. In any scenario, efforts should be made to see that there is some method in the madness by guiding machine-manufacturers and service providers who give the software to ensure some uniformity in slots, trays and icons on ATMs so that customers do not suffer on account of problems like those listed by Dr Chakrabarty which made him an ATM-hater.
M G Warrier,Mumbai
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