The number of micro-ATMs increased to 15.59 million in February 2023, up by 83.19 per cent from a year ago, with the value of transactions at Rs 25,483 crore, up by 2.3 per cent — underscoring that cash is still a much-preferred medium of exchange.
About Micro-ATMs
- Micro-ATMs are devices that are akin to point-of-sale terminals, and are used by business correspondents (BCs) of banks to authenticate customers’ transactions.
- The basic transaction types are deposits, withdrawals, fund transfers, balance enquiries and mini-statements.
- This quick and easy digital payment system allows bank- account holders to make transactions using their Aadhaar number and biometric authentication without physically visiting a bank branch for ATM services.
- Micro-ATMs play a vital role in a journey toward digitisation.
- It is also cost-effective for banks to deploy micro-ATMs at multiple places in a shorter circumference area that serves a wider audience at the cost of one ATM.
- Micro-ATMs are also a critical cog in direct benefit transfers, as beneficiaries need both cash-out points and assistance.
