NO CASH CRUNCH FOR RAIL PASSENGERS: ATM booths to come up at NCR railway stations again

PRAYAGRAJ Rail passengers in the North Central Railways (NCR) region need not worry about a shortage of cash, as ATM booths are set to make a comeback at prominent railway stations. In the first phase, eight stations under NCR’s Prayagraj Division, including Prayagraj Junction, Chheoki, Etawah, Mirzapur, Manikpur, Fatehpur, and Dadri, will feature these ATMs. An additional 10 stations are earmarked for the second phase of implementation.

Hitachi Payment Services Limited has been entrusted with the task for a five-year duration, as confirmed by NCR Prayagraj Division’s PRO, Amit Singh. Under the new system, Hitachi Payment Services Limited, with the permission of the Reserve Bank of India (RBI), will maintain and manage the ATM booths, ensuring cleanliness and security. The e-auction tender for the first eight railway stations has already been completed.

The initiative aims to assist train passengers by providing them with a cash option for various transactions during their travels. While mobile banking and various UPI applications have increased cashless transactions at railway stations, these ATMs offer an alternative for travelers who prefer using cash, according to Singh.

Previously, ATMs were installed at railway stations, but they gradually closed over the years due to banks withdrawing from the initiative, citing financial burdens. The Railway Board had initially allowed the installation of ATMs by banks at railway stations in 2001. However, in 2017, a new policy was introduced, planning for the installation of 2,000 ATMs at stations and nearby areas over a 10-year period. This policy was later withdrawn in favor of reverting to the 2001 decision.

A test check by auditors in 32 divisions across zonal railways revealed a decrease in the number of ATMs from 666 in 2017 to 614 in 2021. Despite earning ₹165.15 crore in license fees from banks during the review period, ₹10.37 crore was outstanding as of March 2021.

In June 2023, considering technological advances and socio-economic changes, the Railway Board revised its policy on Automated Teller Machines (ATMs) and Digital Banking Units (DBUs) on Indian Railway premises. The new policy permits Public Sector Banks, Scheduled Commercial Indian Banks, Indian Co-operative Banks, and White Label ATM service providers licensed by the RBI to install and operate ATMs at railway stations, as per feasibility and demand.

Pic caption: ATM (For representation only)