Half of existing ATMs may shut down across India by March 2019: ATM body

[Kool_SRG]

“These numbers include approximately one lakh off-site ATMs and a little over 15,000 white label ATMs. Currently, the country has approximately 2.38 lakh installed ATMs, as per the latest publicly available figures,” the apex body of the domestic ATM industry said in a statement.

Service providers may be forced to close down almost 1.13 lakh ATMs across the country by March 2019, according to the Confederation of ATM Industry (CATMi).

“These numbers include approximately one lakh off-site ATMs and a little over 15,000 white label ATMs. Currently, the country has approximately 2.38 lakh installed ATMs, as per the latest publicly available figures,” the apex body of the domestic ATM industry said in a statement.

A large number of ATMs in non-urban locations may be shut down due to unviability of operations.

 

“If this happens, the financial inclusion programme would be severely impacted as millions of beneficiaries under the government’s Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme, who withdraw subsidies in form of cash through ATMs, may find their neighborhood ATM shut,” the statement pointed out.

This may result in long queues and chaos similar to what the country witnessed when ATMs were not dispensing cash, post demonetisation.

Job and revenue losses

As per CATMi estimates, several hundred thousand jobs ride on this industry and the closure of ATMs may result in considerable job losses that would be detrimental to financial services in the economy as a whole.

“The forced closure is on account of unviability of operations brought about by recent regulatory guidelines for ATMs hardware and software upgrades, recent mandates on cash management standards and the Cassette Swap method of loading cash,” CATMi said.

CATMi said that its members, which include the ATM managed service providers (MSPs), brown-label ATM deployers (BLAs) and White Label ATM (WLAs) operators, are already reeling under the financial impact caused by huge losses during and post-demonetisation as cash supply was impacted and remained inconsistent for months.

The situation has further deteriorated now due to the additional compliance requirements that call for a huge cost outlay. The service providers do not have the financial means to meet such massive costs and may be forced to shut down these ATMs, unless banks step in to bear the load of the additional cost of compliances.

CATMi added that revenues from providing ATMs as a service are not growing at all due to very low ATM interchange and ever-increasing costs. CATMi estimates an additional outlay of about Rs 3,500 crore – only for complying with the new cash logistics and cassette swap method. These requirements were never anticipated by the industry participants at the time of signing contracts with the banks. Many of these agreements were inked four to five years ago when no such requirements were in sight.

These compliance costs may also see the 15,000-plus WLAs going out of business, it further said.

WLA operators already have huge accumulated losses and are in no position to bear additional costs. ATM interchange, the only source of revenue for WLA operators, has remained static despite frantic pleas to increase the rates.

The ATM industry in India has reached a tipping point, and unless ATM deployers are compensated by banks for making these investments, there is likely to be a scenario where contracts are surrendered, leading to large scale closure of ATMs, CATMi added.

[Mitron]

Ippude chadiva ee news

[Kool_SRG]

[Mitron]

1 minute ago, Kool_SRG said:

Demo debbaki already half moothapaddayi

[Kool_SRG]

1 minute ago, Mitron said:

Demo debbaki already half moothapaddayi

Rural areas lo ayithe goram paristhithi..

[timmy]

hardly any  cash in ATM's maintenance, rent etc anni kalisivasthay ani emo. Ippudu andharu digital ki shift aiypoyaaru andhuke ATM's kaaligaa unnayi ani antaremo 

[perugu_vada]

9 minutes ago, timmy said:

hardly any  cash in ATM's maintenance, rent etc anni kalisivasthay ani emo. Ippudu andharu digital ki shift aiypoyaaru andhuke ATM's kaaligaa unnayi ani antaremo 

Digital ki convert avatam not easy in a country like india, with morethan 70%  lives in villages 

[JAPAN]

yeah, just before demonetization ATM upgrades chesaru pull back money issue vundhi ani 

after demonetization tarvatha ATM maintainence valla kastalu mamooluga levu

'friend working as manager in diebold

first softwares change cheyyataniki deadline pettaru for new 500, 2000 notes

tarvatha casettes kooda change cheyyalsi vachindhi 

malli kotha 100's 200's malli software change and ATM upgrades kooda cheyyali annaru

kukka bathuku ayipoyindhi valladhi maatram..24 hrs phone chevilone vuntadhi maa vaadiki ayithe

[Kool_SRG]

1 minute ago, JAPAN said:

yeah, just before demonetization ATM upgrades chesaru pull back money issue vundhi ani 

after demonetization tarvatha ATM maintainence valla kastalu mamooluga levu

'friend working as manager in diebold

first softwares change cheyyataniki deadline pettaru for new 500, 2000 notes

tarvatha casettes kooda change cheyyalsi vachindhi 

malli kotha 100's 200's malli software change and ATM upgrades kooda cheyyali annaru

kukka bathuku ayipoyindhi valladhi maatram..24 hrs phone chevilone vuntadhi maa vaadiki ayithe

NCR , Dibold ani companies untayi ave ekkuva ATM hardware, software service support chestaayi chiraakayina pane too much tirugudu kooda untadi..

[Mitron]

50 minutes ago, Kool_SRG said:

Rural areas lo ayithe goram paristhithi..

yes.. worst..

 

Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme benefitters paristhiti  

[Mitron]

49 minutes ago, timmy said:

hardly any  cash in ATM's maintenance, rent etc anni kalisivasthay ani emo. Ippudu andharu digital ki shift aiypoyaaru andhuke ATM's kaaligaa unnayi ani antaremo 

yes... anni lepeste paaye 

[Kool_SRG]

1 minute ago, Mitron said:

yes.. worst..

 

Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme benefitters paristhiti  

Andulo ese ga black ni white chesaaru aallaki koncham padesuntaaru le 

[Mitron]

5 minutes ago, Kool_SRG said:

Andulo ese ga black ni white chesaaru aallaki koncham padesuntaaru le 

adendi ala antav... nalla dhananni teeseyyadanike ga idi chesindi

 

[Kool_SRG]

1 minute ago, Mitron said:

adendi ala antav... nalla dhananni teeseyyadanike ga idi chesindi

 

Nalla dhananni white chesaaru ga malli addekadidhi...

[solman]

Ache din