Half of Indiav ATM may shut down by March 2019, warns Industry bodyATM Shutdown: 1.13 Lakh 50% ATM March Shut Down By 2019
Half of Indiav ATM may shut down by March 2019, warns Industry bodyATM Shutdown: 1.13 Lakh 50% ATM March Shut Down By 2019
Half of India's ATMs may shut down by March 2019, warns Industry body
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
Changes in regulatory landscape are making it unviable to operate ATMs, and may lead to the closure of half of the 2.38 lakh machines in the country by March 2019, the Confederation of ATM Industry (CATMi) warned Wednesday.
Closure of the ATMs will impact thousands of jobs and also the financial inclusion efforts of the government, the industry body said in a statement.
"Service providers may be forced to close down almost 1.13 lakh ATMs across the country by March 2019. These numbers include approximately one lakh off-site ATMs and a little over 15,000 white label ATMs," it said.
The industry has reached a "tipping point", the body added.
The industry body said that recent regulatory changes, including those on hardware and software upgrades, coupled with mandates on cash management standards and the cassette swap method of loading cash, will make ATM operations unviable, resulting in the closure.
The new cash logistics and cassette swap method will alone result in costs of Rs 3,000 crore for the industry, it estimated.
It added that the ATM industry, including managed service providers, brown-label ATM deployers and white label ATM operators (WLAO), is still reeling under the shock of demonetisation.
"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," it said
CATMi director V Balasubramanian told news agency IANS that the recent regulatory guidelines issued for hardware and software upgrade of ATMs has led to higher costs, and that ATM operators have reached a "tipping point".
Listing reasons that have jolted the ATM industry, Balasubramanian highlighted recent mandates on ATM cash management standards and the cassette-swap method - both of which have been recommended by the Reserve Bank of India (RBI).
The Cassette-swapping method will enable operators to quickly replenish exhausted ATMs. The central bank has asked for the integration of lockable cassettes for adding an extra layer of security as well.
Half of India's ATMs may shut down by March 2019, warns Industry body ATM Shutdown: 1.13 Lakh 50% ATMs March Shut Down By 2019
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