Not ATM but No Time Money!

The RBI did a survey – they wanted to judge the efficacy of the ATMs running across the country. And they found out something which we all have always experienced and knew all along – most ATMs do not work. We usually see the security guard sleeping in the cool confines of the AC where the ATM is homed though not working.

Now there is statistical evidence – RBI surveyed 4000 ATMs and one out three don’t work. As of Feb. 2016, India had a total of 197,327 ATMs, of which 100,671 were deployed on-site while the rest were off-site. Maharashtra has the highest concentration of ATMs at 22,659 and least in Kerala at 8470 ATMs. And shockingly, Delhi has just 8639 ATMs.

The reason for this dismal state of ATMs is the high cost of maintenance, which banks say is not covered by usage charges. That is the reason why we see different banks charging different rates for ATM withdrawals, after the first few free usage.

The RBI and the Govt are trying their level best to improve financial inclusion with RBI allowing white label ATMs from NBFCs and Jan Dhan Yojna planning to set up some 20,000 ATMs across India. If this is the state of the existing ATMs, do these new plans make any sense?