Over the past few months, various banks across the country have made the significant decision to close or reduce the number of thousands of ATMs. However, to ensure that customers don't face cash shortages as the number of ATM machines decreases, the Reserve Bank of India (RBI) and banks has developed a new mega plan that includes "interoperable cardless cash withdrawal" and other options. What exactly is this mega plan?

GeographicalReference

The country's public sector banks have taken a major step to improve customer convenience and strengthen digital banking. According to reports, approximately 15,000 outdated ATMs will be upgraded, making banking services smarter, faster, and more secure.

What is the real issue?

Public sector banks are now preparing to replace their old and outdated ATMs with new technology ATMs and cash recycler machines. These improvements are aimed not only at cash withdrawals but also at transforming ATMs into mini-bank branches. India already has a large ATM network, connected to the National Financial Switch (NFS), operated by the National Payments Corporation of India, connecting millions of ATMs across the country.

What will be new in ATM?

After the upgrade, ATMs won't just be limited to cash withdrawals; customers will also benefit from several advanced features:
Cash recycling machine – This allows you to deposit and withdraw money.
UPI-based cash withdrawal – This feature allows you to withdraw money without a card.
Improved security features – This feature will protect you from fraud and keep your money safe.
Faster transaction processing – This will allow you to complete your transaction in less time, making withdrawals from the machine easier.
Multi-service ATM – A single ATM offers multiple features, such as balance, statement, and transfer.

Who will benefit the most?

Customers in rural and small towns, where bank branches are scarce, will benefit from this facility.
Millions of customers of public sector banks will also benefit.
Small businesses and cash users will also benefit.
Those who don't understand digital features and can't take advantage of them will benefit. Those who frequently use ATMs will benefit.

Why was this decision necessary?

Many ATM machines were old and slow.
Despite the rise of digital transactions, the demand for cash remains high.
Banks are now adopting a "cash recycling model" to reduce costs and improve service.

PC: Navarastra