Promoting ATMs over Branches
By: Amit Bhushan Date: 15th Dec. 2016
With better supplies of Cash at least in the cities where many people have an understanding as well as brush with technology/ies, perhaps it’s time that the government take decisions that could shorten queues at the branches. It helps that even the bank staff seem to now be yearning for a break. This can be done by increasing the ATM cash withdrawal limit to say Eight thousand instead of two thousand and five hundred odd. However the government mush simultaneously urge banks to have ‘all’ or most of their ATMs operational. Almost 20% of these machines seem to be under maintenance. While under normal circumstances no one noticed, however these may be an eyesore with the queues at ones which have cash or at the branches struggling to cope up with the pressure. Some of the effects could be on account of greater wear and tear, as well as mis-use, abuse by first time users or reluctant users. Improved confidence of public regards availability of Cash would also ensure faster velocity of the new cash exchanging hands and ameliorate some of the commerce.
Perhaps the government officials should have some ATM servicing norms for the Rural ATMs and the Urban ATMs. The ATMs can now be categorized on usage over the norms for servicing the same can be evolved. While the Cash-less business promoters may not like the idea, however it may be noted that shifting the public off the branches is the first step towards Cash-less. Present meager ATM withdrawal might be serving as a hindrance now as well as a cause of rising banker’s agony. As the promise of service by ATMs improves including 24x7 availability, the public would heave a sigh of relief. This would likely encourage more people to banks and also somewhat greater adoption of ATM/Debit Cards and electronic payments. In fact for first time users of Debit Cards, the government can have some incentive structure This can be in form of Aadhar embedded accounts/wallets only where by users can get INR 50 for completing first 2 debit card payments to merchants within a span of 1 month to get the reward. Unique identity of beneficiary will ensure that no single beneficiary can get more than INR 50. For heavy users, small amount may not be any incentive but many first time or reluctant users will be tempted and break the barrier. The funding for the scheme could be from the dividends that are likely. While public gets some incentive while continuing to support the move, the pressures on banks subside and on the increases on the merchants to go cash-less. Even if 50% of those holding debit cards (approx.40Cr.) claim the reward, it would entail outflow of about a thousand odd crore, but huge gains on Cash-less drive.
Banks can then also assume that there would an increased load on the ATMs and incorporate the same in their long term planning to have the requisite support. Likewise for the Cash servicing agencies and new ATM location targets. It might be of help if the government looks at institutional silos like Transportation, or government departments of schools/colleges or Rehri-Patri wallahs and work under institutionalized approaches to help them adopt cash-less through incentives and dis-incentive structures. This would then steadily permeate to the last person through social transfer of knowledge and skills. Under the demonetization structure, it is push with circumstances of severe dis-incentives. This is because while the Cash has vanished, alternatives for Cash-less have not been developed to the scale as desirable. Institutionalized push would be of greater help now as the demonetization story might have already played out to a large extent for most urban centers and is likely to be fizzle out in the vast hinterland in next couple of weeks. This while the Cash-less may not have yet caught up as even with 300% growth, their reach is still minuscule. While the incentives for adoption have now come up, for the ordinary to break barriers, it might still require a scheme for the ‘people’ rather than a scheme for the gas-stations.
PS: While the Parliamentary session have been washed out on account of demonetization (just as it has been previously wash-out on account FDI in Retail), it might behoove upon the government that it gives opposition its due space on the matter. This is not only because it’s caught unprepared for the big move for sure, but also because it needs to adequately take on the other charges which if not taken on record would keep the curious minds ignited, much to its own disadvantage. Regards the opposition, blockade for sake of rules while maintaining suspense may hold good for a fortnight, but is unlikely to be of much help without documents or evidence. Not listening of veterans from both sides and by both sides, would only ensure that the game of political churning continues without political leaders being in command.
By: Amit Bhushan Date: 15th Dec. 2016
With better supplies of Cash at least in the cities where many people have an understanding as well as brush with technology/ies, perhaps it’s time that the government take decisions that could shorten queues at the branches. It helps that even the bank staff seem to now be yearning for a break. This can be done by increasing the ATM cash withdrawal limit to say Eight thousand instead of two thousand and five hundred odd. However the government mush simultaneously urge banks to have ‘all’ or most of their ATMs operational. Almost 20% of these machines seem to be under maintenance. While under normal circumstances no one noticed, however these may be an eyesore with the queues at ones which have cash or at the branches struggling to cope up with the pressure. Some of the effects could be on account of greater wear and tear, as well as mis-use, abuse by first time users or reluctant users. Improved confidence of public regards availability of Cash would also ensure faster velocity of the new cash exchanging hands and ameliorate some of the commerce.
Perhaps the government officials should have some ATM servicing norms for the Rural ATMs and the Urban ATMs. The ATMs can now be categorized on usage over the norms for servicing the same can be evolved. While the Cash-less business promoters may not like the idea, however it may be noted that shifting the public off the branches is the first step towards Cash-less. Present meager ATM withdrawal might be serving as a hindrance now as well as a cause of rising banker’s agony. As the promise of service by ATMs improves including 24x7 availability, the public would heave a sigh of relief. This would likely encourage more people to banks and also somewhat greater adoption of ATM/Debit Cards and electronic payments. In fact for first time users of Debit Cards, the government can have some incentive structure This can be in form of Aadhar embedded accounts/wallets only where by users can get INR 50 for completing first 2 debit card payments to merchants within a span of 1 month to get the reward. Unique identity of beneficiary will ensure that no single beneficiary can get more than INR 50. For heavy users, small amount may not be any incentive but many first time or reluctant users will be tempted and break the barrier. The funding for the scheme could be from the dividends that are likely. While public gets some incentive while continuing to support the move, the pressures on banks subside and on the increases on the merchants to go cash-less. Even if 50% of those holding debit cards (approx.40Cr.) claim the reward, it would entail outflow of about a thousand odd crore, but huge gains on Cash-less drive.
Banks can then also assume that there would an increased load on the ATMs and incorporate the same in their long term planning to have the requisite support. Likewise for the Cash servicing agencies and new ATM location targets. It might be of help if the government looks at institutional silos like Transportation, or government departments of schools/colleges or Rehri-Patri wallahs and work under institutionalized approaches to help them adopt cash-less through incentives and dis-incentive structures. This would then steadily permeate to the last person through social transfer of knowledge and skills. Under the demonetization structure, it is push with circumstances of severe dis-incentives. This is because while the Cash has vanished, alternatives for Cash-less have not been developed to the scale as desirable. Institutionalized push would be of greater help now as the demonetization story might have already played out to a large extent for most urban centers and is likely to be fizzle out in the vast hinterland in next couple of weeks. This while the Cash-less may not have yet caught up as even with 300% growth, their reach is still minuscule. While the incentives for adoption have now come up, for the ordinary to break barriers, it might still require a scheme for the ‘people’ rather than a scheme for the gas-stations.
PS: While the Parliamentary session have been washed out on account of demonetization (just as it has been previously wash-out on account FDI in Retail), it might behoove upon the government that it gives opposition its due space on the matter. This is not only because it’s caught unprepared for the big move for sure, but also because it needs to adequately take on the other charges which if not taken on record would keep the curious minds ignited, much to its own disadvantage. Regards the opposition, blockade for sake of rules while maintaining suspense may hold good for a fortnight, but is unlikely to be of much help without documents or evidence. Not listening of veterans from both sides and by both sides, would only ensure that the game of political churning continues without political leaders being in command.