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Micro ATM meant to be a device that is used by a million Business Correspondents (BC) to deliver basic banking services. The platform will enable Business Correspondents (who could be a local kirana shop owner and will act as ‘micro ATM’) to conduct instant transactions.

The micro platform will enable function through low cost devices (micro ATMs) that will be connected to banks across the country. This would enable a person to instantly deposit or withdraw funds regardless of the bank associated with a particular BC. This device will be based on a mobile phone connection and would be made available at every BC. Customers would just have to get their identity authenticated and withdraw or put money into their bank accounts. This money will come from the cash drawer of the BC. Essentially, BCs will act as bank for the customers and all they need to do is verify the authenticity of customer using customers’ UID. The basic transaction types, to be supported by micro ATM, are Deposit, Withdrawal, Fund transfer and Balance enquiry.

Here's how micro ATMs operate!

To operate this portal, a person has to undergo verification process such as Aadhaar card with fingerprint scanning or card swipe option. Once verified, he or she will be able to select options for various transactions like cash deposit, fund transfer, eKYC based saving account, Aadhaar seeding, cash withdrawal, balance enquiry and service request acceptance. Note, these options can be different depending upon banks or fintechs. For carrying a transaction all you have to do is select the option as per your requirement, then a message will be displayed on the screen and print receipt is generated. After the transaction, a person will as usual receive confirmation from their bank about the transaction via SMS. Among the benefits these Micro ATMs are that they are portable devices, have low cost option, biometric related secure transaction and also have low-cost features.

How it is more convenient?

  • According to bankers, the cost of deployment of a micro ATM is lesser than that of an ordinary ATM. ATMs need at least 80-100 transactions a day to be viable as they costs several lakhs. A micro ATM costs less than Rs 20,000.
  • It is portable.
  • Micro ATM has connectivity through GSM, hence it can travel from village to village, said Das during a press interaction on Monday.

What transactions can be done at Micro ATM?

  • Cash Deposit
  • Cash Withdrawl
  • Fund Transfer
  • Balance Enquiry
  • Service Request Acceptance
  • Aadhar Seeding
  • eKYC based savings account opening