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Queues get longer as ATM numbers decreases and debit card holders increases

Queues get longer as ATM card increases

From 105 transactions, a day recorded after the demonetisation in April 2017, average daily transactions per ATM have gone up to 130 in April 2019.

Although the government is trying its best to promote cashless/digital transaction in India, cash transactions have not been reduced. After the declaration of demonetisation ATMs are shrinking in numbers over the past two years which has led to an increased usage of the existing ATMs.

In fact, according to records, in April 2017, soon after demonetisation the recorded daily cash transaction was 105 per day, which has escalated to 130 in April this year. TOI reports that the banks are issuing more debit cards as a result average usage of ATMs are on the rise.

As per the official data, 78 crore debit cards were being issued by banks in April 2017, which has raised up to 88 crores in April 2019.

TOI citing bankers stated that after ATM regulations became stricter, many banks found it more financially beneficial to be net issuers and pay a transaction charge of Rs 15 to other banks for using their ATMs.

According to RBI official data, at the end of the week June 14, 2019, the available currency in circulation was Rs 22.19 lakh crore. Whereas, in April 2017 the amount was not more than Rs 14.17 lakh crore. Thus, the records prove that YOY has increased to 13% in less than 2 years time.

ATM usage has witnessed a rapid growth in Tier II and Tier III towns with the opening of Jan Dhan accounts since the rents are low. Jan Dhan accounts, however, was opened three years back but a lot of them are being funded now because of the PM-Kisan scheme which credits the account of low-income farmers with Rs 2,000 every quarter. Thus, boosting the usage of ATM further.

Till the end of September 2018, there were 2,21,492 Automated Teller Machines (ATMs) in the country, as per RBI data. Earlier this year RBI was asked to address this problem of lack of ATMs for avoiding the cash crunch by the Standing Committee of Finance. The committee also raised concerns on the number of ATMs being installed in a growing economy like India.

About Umesh Kherajani

Foodie, team manager, and a passionate News Editor adept in content writing for the entertainment world. I am very fond of learning new things, especially about the latest technological innovations. With 7 years of experience as a Bollywood blogger, I have had the privilege of working for many renowned Bollywood portals. You can message me on facebook or send an email at [email protected]

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