Is there a major ATM shortage in India? Banks complain to RBI, government
Leading bankers raised the issue in a meeting with officials last month saying, “We have discussed the issue internally."
Banks have reportedly informed the government and Reserve Bank of India (RBI) about shortage in supply of automated teller machines (ATMs), people in the know said as per Economic Times. Banks have also pushed for clarity in norms for procurement via the government e-marketplace, the report claimed.
Leading bankers raised the issue in a meeting with officials last month reportedly saying, “We have discussed the issue internally... It was highlighted that one big issue is that ATM vendors do not have the capacity.”
Read more: Adani Group to invest USD 100 billion in energy transition, says Gautam Adani
As per industry insiders, the initial reason for low capacity is connected to the 'Make in India' guidelines implemented in FY20 owing to which it took time for vendors to set up Indian operations, as per the report. A person in the know told the outlet, “Not all ATM vendors are registered there, and we also need more clarity on the process and guidelines to avoid any vigilance action.”
Read more: SBI approves raising up to ₹20,000 crore for FY25 via long term bonds
Banks should be allowed to float independent requests for proposals (RFPs) for ATMs if all guidelines are met, the person said. As per the report, bankers have also said that the ATM shortage is impacting them more at a time when they are in the process of migrating to lockable cassette mechanisms in ATMs.
"While this was to be done in a phased manner, we are short of targets, and this could lead to regulatory action, including fines," the bank executive said as per the report, adding, “Poor infrastructure issues, including vaulting arrangements, have also contributed to this delay.”
Read more: Elon Musk sued by ex-Twitter executive: Claims he & others cheated out of $200 million in severance
Manjunath Rao, president-managed services & technology solutions at CMS Info Systems, said, “Banks, in addition to ATMs, are now installing cash recycling machines to drive higher efficiency and deliver enhanced customer experience. GeM is a robust portal and as banks do a technological refresh of ATMs, we expect the demand to grow, and the industry is ready to meet it.”
