The macro impact of microATMs

While traditional teller machines are staring at an uncertain future in a digitized world, microATMs have doubled as they aid in cash dispensation in rural India and processing of government aids to beneficiaries

author-image

By 

Pratik Bhakta

September 20, 2021

4 Min Read

The rapid pace of digitization of payments in India, especially in large cities, has meant stagnation for the ATM industry. But in the overall economy cash remains in massive demand, especially in rural areas. How is that demand met? Answer: microATM terminals.

These terminals help people in rural areas withdraw cash transferred to their accounts from government schemes, pay digitally using biometric authentication, and even allow card payments directly. MicroATMs serve two purposes: encouraging digital payments in rural India, and meeting their demand for cash.

The number of microATMs in India increased to more than 474,000 in July from about 264,000 in February 2020, as per Reserve Bank data.

This proliferation of microATMs is expected to have a significant impact on India’s banking ecosystem. ATMs are meant to serve as micro bank branches in areas where setting up a branch is not cost-effective. Advancements in technology have now made it possible for small retailers and shop owners to also function as local banking points. These agents can offer services such as cash withdrawal, bill payments, ticket booking, insurance payments, and even small loans.

Join now to continue reading

Sign in using

Or

Sign in using your email

Don't have an account?

Forgot Password?

By signing up for The CapTable you agree to the

Terms of Service

and

Privacy Policy

of the platform.

Smart Information, Better Decisions

We report on the latest and most important developments in India’s biggest tech companies and disruptive startups so you can make better decisions.

Inside View with Org Charts

Know the key decision-makers with Org Charts. We thrive on decoding boardroom conversations so we can bring you a 360° view of what's happening at India's high-growth companies.

Seasoned Team

Tracking the highs and lows of India’s biggest internet companies over the past decade has given us access to the right decision-makers to interpret the latest state of play.

Inside View

We thrive on inside scoops and decoding boardroom conversations so we can bring you a 360° view of what’s happening at India’s high-growth companies.

share-button
like-button
share-button

For subscribers only

Premium Reads

>>

View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.