Micro ATMs are card swipe machines through which banks can remotely connect to their core banking system.
- This machine comes with a fingerprint scanner attached to it. In other words, micro ATMs are the handheld point of sale terminals used to disburse cash in remote locations where bank branches cannot reach. Micro ATMs are similar to point of sale (PoS) terminals and are a doorstep mobile banking arrangement cum-mobile ATM device.
How is it 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 cost several lakhs. 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.
How does the micro ATM work?
Bank will assign a correspondent who will sign up customers in remote areas after verifying their identity (fingerprint can be used as an authentication tool for rural people).
The fingerprint and personal details may also be linked to the Aadhaar Card, which will then serve as the ID proof required to withdraw money.
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