Introduction
Information technology is one of the most important facilitators for the transformation of the Indian banking industry in terms of its transactions processing as well as for various other internal systems and processes. The various technological platforms used by banks for the conduct of their day to day operations, their manner of reporting and the way in which interbank transactions and clearing is affected has evolved substantially over the years.
ATMs were introduced to the Indian banking industry in the early 1990s initiated by foreign banks. Most foreign banks and some private sector players suffered from a serious handicap at that time- lack of a strong branch network. ATM technology was used as a means to partially overcome this handicap by reaching out to the customers at a lower initial and transaction costs and offering hassle free services. Since then, innovations in ATM technology have come a long way and customer receptiveness has also increased manifold. Public sector banks have also now entered the race for expansion of ATM networks. Development of ATM networks is not only leveraged for lowering the transaction costs, but also as an effective marketing channel resource.
We can go through some major advantages of ATMs 1) Round the Clock Services:- ATM provides banking services to its customers round the clock, 24 hours a day, 7 days a week and 365 days a year. 2) Access to bank from any part of the world : Essential banking services like deposits, withdrawals transfer of funds, etc can be accessed by customers from any part of the world. 3) Expansion of Services to any corner of the world : Of the Banks can expand their services to any corner of the world by providing electronic access to its customers. 4) Reduction in cost of operation : This reduces human intervention and thereby reduces the cost of operations and increases profitability of banks.
Now a days government ruled out everybody should have to open at least one bank account. So it getting new picture on the users of banking services would be doubled but also that would be in most of the public and private banks are there is no anymore charges for providing ATM facility to the customers so it will increase the usages of ATMs.
Discussion
There are manly discussion go through three things that are given bellow.• RBI new guidelines announced about installation of new Off-site ATM should expand to across rural areas and semi rural areas.
We can understand that RBI new guideline has talking about strictly bankers should expand their ATM network to rural areas it is showing that bank should have to invest in new ATMs.
• Entering new technologies in banking transaction that would lead pulling back to investment on new ATMs.
Entering new technologies like Tab Transaction, Internet Banking, Mobile Baking, Online Purchase, Debit Card and Credit Card Purchase, and E-Payments, etc. This users are increasing in a each and every day somehow we can see usages of ATM are decreasing. So that the bankers are not ready to taking steps for investing new ATMs.
• RBI other guidelines announced about customer can withdrew money from any ATM with first 5 transaction at free of charge and rest of the transaction is payable.
In this guidelines has a chance to miss use some bankers and that would be like to think they have suffer a huge investment of establishing ATM counters and also other fixed cost and some other variable costs so that it could lead to them waiting for other bankers to establish their own ATM counter and getting benefit to each others.
So in this problem can reduce through only Whit-Label ATMs
White-Label ATM - India ? What are WLAs ?
White label ATMs are popular in Canada. Since 2006, some banks have been pressing with RBI to introduce white label ATMs in India too. On 14th February, 2012, RBI has issued DRAFT guidelines and asked the comments of the bankers and public in this regard. Thus, these guidelines are still not applicable but are likely to be soon approved.
Definition and Meaning of White-Label ATM?
White Label ATM or White Label Automated Teller Machines or WLAs in India will be owned and operated by Non Bank entities. From such White Label ATM customer from any bank will be able to withdraw money, but will need to pay a fee for the services. These white label automated teller machines (ATMs) will not display logo of any particular bank and are likely to be located in non traditional places.
What is the purpose for introduction of White Label ATMs in India.
In India only Banks are allowed to set up ATMs. Although between 2008 - 2011, there has been 30% growth in number of ATMs and by the beginning of 2012, we have about 87,000 ATMs in India, yet the penetration of ATMs in Tier III and Tier IV cities has been low and downtime of such ATMs has been high. Thus, RBI is feeling that there is a need to expand ATM network, which can be done by only with the help of private operators.
Who will benefit from White Label ATMs.
The white label automated teller machines are likely to benefit customers as well as banks. With the expansion of ATM network, customers will be able to withdraw funds at more locations which will be convenient and located near to their home or place of work. Banks too support introduction of white label ATMs as such machines are likely to reduce pre-transaction cost for them and will be free from the problems relating to maintaining and running such a payment channel
Conclusion
Here i already discussed a major issues or challengers of a bankers for their new ATM investments, that has here pointed that mainly three points of banks are investing in new ATM , here we are getting the exact picture from above discussion of establishing new ATMs are compulsory for each and every bankers across in India where it is needed according to RBI Guidelines. And i found some issue of installing new Off-site ATMs and that would only overcome through the banking sector should come forward with white-Label ATM counters, it will reduce over burden of the ATM counters and also it can reduce a huge cost and provide better services to all banking customers.
References
1)www.cepr.org/meets/wkcn/6/6670/papers/verboven.pdf
2)www.econ.kuleuven.be/.../Investment%20and%20usage%20of%20new...
3)www.trynci.com/cat/atmtec.htm
4)www.business-standard.com/.../pes-eye-opportunities-in-indian-...
5)www.financialexpress.com/news/india-post-draws-up...atm.../1211006
6)www.rbi.org.in › Master Circulars
7)www.iibf.org.in/documents/BL-RRBs.pdf
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