At ATMs, 40% increase in maintenance cost

At ATMs, a 40% increase in maintenance cost

Due to the increase in the cost of maintenance, there has been an increase in the number of ATM businesses across the country, and the possibility of a large number of ATMs will be discontinued as a result of this. According to sources related to the ATM industry, the central government has further tightened regulations related to ATMs. Other regulations, including ATM maintenance, have increased by 40% over the past year due to these rules. On the one hand, when the expenditure grew, that yield was not increased.

Due to the increase in the cost of maintenance, there has been an increase in the number of ATM businesses across the country, and the possibility of a large number of ATMs will be discontinued as a result of this. According to sources related to the ATM industry, the central government has further tightened regulations related to ATMs. Other regulations, including ATM maintenance, have increased by 40% over the past year due to these rules. On the one hand, when the expenditure grew, that yield was not increased. Therefore, most ATM operators are eager to shut down ATMs.

At present, the number of ATMs in the country is around 2.20 lakhs, according to information provided by Director General of Confederation of ATM Industry, Lalit Sinha. Out of 18,000 White Label ATMs, their operations are fully managed through private operators. Apart from this, there are 50 thousand ATM brown labels, and these ATMs are traded by banks. The rest are operated by ATM banks. According to Sinha, a few months ago, the rules regarding the maintenance and transactions of ATMs have been tightened by the Reserve Bank. So, the cost of ATMs has gone up by 40%. As compared to the decrease in revenue, the ATM is difficult for operators. They have to pay compensation for the transactions at the private ATM holders’ ATMs. It costs 7 to 12 rupees per transaction. There has been no increase in these charges over the last year. However, due to consistent online behavior, the possibility of a further impact on the transactions through ATMs is also being considered by the ATM operator to cut the number to save in expenses.

Lowering of branches

The decline in the number of ATM centers has also been seen as a result of reduced bank branches. After the involvement of five associate banks and women banks in the initial six months of 2018, SBI decided to shut down 1 thousand branches in an aggravating manner. One of the bank’s ATMs in each of the two ATMs is in the branch. According to Dineshkumar, Managing Director of SBI, banks have reduced the need for a large number of branches to be opened due to digitization.

Digitization will increase

While the number of ATMs is decreasing, mobile and NetBanking is on the other hand. Over the past five years, mobile banking transactions have increased by 65 percent. The young generation in the country is attracted to online banking and mobile apps. Thus, the number of ATMs cannot be seen very much.

Trailing back in the BRICS

The number of ATMs across the country has been published by the Reserve Bank recently. There are unauthorized international rules about how many ATMs are expected per one million people. However, in the BRICS countries (Brazil, Russia, India, and China), India has already been trailing, according to the Reserve Bank of India’s latest data. With this backdrop, the number of ATMs in the country will be affected further.
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