ATM’s in Rural

Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India. Banks have been deploying ATMs to increase their reach. As at the end of December 2007, the number of ATMs deployed in India was 32,342. More people are now moving towards using the automated teller machines (ATM) for their banking needs. 95% people now prefer this modern channel to traditional mode of banking. Almost 60% people use an ATM at least once a week.

The first Automated Teller Machine (ATM) was introduced in the year 1967 by Barclays Bank in Enfield Town in North London. At that time a few would have anticipated excess in ATMs. Then for many years after, the aim was to shift people off the teller lines thus lowering a bank‘s distribution costs and increase efficiency. But in the 1980s, it was noticed that people continued to visit branches, though not as frequently, so that with the added costs of ATMs, overall distribution costs were actually rising.

Then, in the mid-1990s, came surcharges, which fuelled the proliferation of off-premises ATMs, which led in turn to the current overcapacity. There was a slowdown in ATM transactions, partially because of the consumer’s reaction to the imposition of surcharges. Also by the advent of surcharging there was a massive growth in the number of ATMs as it offered ATM owner’s revenues making it economical to install ATMs where they might not have been placed otherwise A new ATM designed for rural India might just find a global market. Conceptualized by Chennai’s Vortex Engineering, in collaboration with IIT Madras, the Gramateller ATM brings banking to semi urban and rural customers.

Incorporating innovative answers to concerns about viability and operating expenses, the ATM is low-cost and durable. With an ability to run on solar power, it also represents a unique, green alternative. The Gramateller ATM is the result of years of work. Experiments in rural India proved that customers were quick to accept ATMs, but the costs were just too high to make them a practical feature of rural banking. Up against issues such as unavoidable power-cuts, the task of perfecting an ATM for this setting faced real challenges.

With conventional ATM costs at approximately Rs. 5 lakh, the new design needed to completely re-think the mechanics of the device. Considering that installation outlay could bring the total to Rs. 8-10 lakh – after factoring in air-conditioning and a structure to protect the ATM – reducing these costs was the key to making a new design possible.ATMs usually have an internal, vertical cassette for storing and dispensing notes. This involves a spring to push the notes out. The Gramateller uses a horizontal cassette and simple gravity for this function, saving significant power.

The new ATMs can dispense soiled notes, and include fingerprint authentication capabilities. While the initial expense of solar panels may be high, the result is almost no running cost, and a non-polluting device.Vortex introduced Gramateller commercially in 2008, and is now receiving orders from banks. State Bank of India has ordered 545 ATMs. With recent enquiries from African countries and Indonesia, this investment in banking for rural India looks set to expand world-wide.

 

[Dhruv Bindhani]

Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India. Banks have been deploying ATMs to increase their reach. As at the end of December 2007, the number of ATMs deployed in India was 32,342. More people are now moving towards using the automated teller machines (ATM) for their banking needs. 95% people now prefer this modern channel to traditional mode of banking. Almost 60% people use an ATM at least once a week.

The first Automated Teller Machine (ATM) was introduced in the year 1967 by Barclays Bank in Enfield Town in North London. At that time a few would have anticipated excess in ATMs. Then for many years after, the aim was to shift people off the teller lines thus lowering a bank‘s distribution costs and increase efficiency. But in the 1980s, it was noticed that people continued to visit branches, though not as frequently, so that with the added costs of ATMs, overall distribution costs were actually rising.

Then, in the mid-1990s, came surcharges, which fuelled the proliferation of off-premises ATMs, which led in turn to the current overcapacity. There was a slowdown in ATM transactions, partially because of the consumer’s reaction to the imposition of surcharges. Also by the advent of surcharging there was a massive growth in the number of ATMs as it offered ATM owner’s revenues making it economical to install ATMs where they might not have been placed otherwise A new ATM designed for rural India might just find a global market. Conceptualized by Chennai’s Vortex Engineering, in collaboration with IIT Madras, the Gramateller ATM brings banking to semi urban and rural customers.

Incorporating innovative answers to concerns about viability and operating expenses, the ATM is low-cost and durable. With an ability to run on solar power, it also represents a unique, green alternative. The Gramateller ATM is the result of years of work. Experiments in rural India proved that customers were quick to accept ATMs, but the costs were just too high to make them a practical feature of rural banking. Up against issues such as unavoidable power-cuts, the task of perfecting an ATM for this setting faced real challenges.

With conventional ATM costs at approximately Rs. 5 lakh, the new design needed to completely re-think the mechanics of the device. Considering that installation outlay could bring the total to Rs. 8-10 lakh – after factoring in air-conditioning and a structure to protect the ATM – reducing these costs was the key to making a new design possible.ATMs usually have an internal, vertical cassette for storing and dispensing notes. This involves a spring to push the notes out. The Gramateller uses a horizontal cassette and simple gravity for this function, saving significant power.

The new ATMs can dispense soiled notes, and include fingerprint authentication capabilities. While the initial expense of solar panels may be high, the result is almost no running cost, and a non-polluting device.Vortex introduced Gramateller commercially in 2008, and is now receiving orders from banks. State Bank of India has ordered 545 ATMs. With recent enquiries from African countries and Indonesia, this investment in banking for rural India looks set to expand world-wide.

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