ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » Technology News

Digital banking may eat into ATM business

According to V. Balasubramanian, President, Financial Software and Systems (FSS), the demand for ATMs is unlikely to be affected in the next couple of years, but "it is not possible to make a growth estimate after two years given the changed situation".

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Digital banking may eat into ATM business
ATMs are cash-vending machines and operators are paid on a per transaction basis. Photo: Pixabay

With the government nudging people towards digital banking modes -- payments through mobile phones, Point of Sale (PoS) machines and others -- ATM players may find their business in a flux in the coming years.

ATMs are cash-vending machines and operators are paid on a per transaction basis.

While some industry insiders see a plateauing of demand for ATMs because of the various other payment modes that will come into play in the near future, others are sanguine about the continued demand for the cash-dispensing machines.

According to V. Balasubramanian, President, Financial Software and Systems (FSS), the demand for ATMs is unlikely to be affected in the next couple of years, but "it is not possible to make a growth estimate after two years given the changed situation".

On the other hand, K. Srinivas, Managing Director and CEO of BTI Payments Pvt Ltd, said ATM numbers in India would grow for the next 15-20 years.

As Srinivas pointed out, the US, with a population of around 320 million, has some 432,000 ATMs, while India, with a population four times that has only around 220,000. There are thousands of Indian villages that do not have even one such machine, he added, suggesting huge headroom for growth.

"Even in the most advanced countries, where digital banking is popular, cash transactions still take place. Over a period of time ATM players will also rediscover themselves and offer additional services," Srinivas said.

According to him, the increase in PoS terminals will not pose a major threat to ATM players, while Balasubramanian said one problem with rural areas migrating to mobile payments in large numbers is that not many have smartphones.

The government, however, is pushing hard for higher penetration of digital banking so that the nation moves towards a cashless economy.

According to a report prepared by SBI`s Group Chief Economic Advisor Soumya Kanti Ghosh, there is excess of Rs 5 lakh crore cash in circulation which is "neither required nor desirable" and that a digital economy needs to be encouraged.

"The current size of digital banking (including credit cards, debit card transactions through PoS terminals, transactions through prepaid payment instruments like m-Wallets, and mobile banking) is around Rs 1.2 lakh crore," he said in the report.

According to Ghosh, if the size of digital banking were to increase to Rs 3 lakh crore, there was a need for around 20 million extra PoS terminals.

"Further, we have to ensure that per mobile banking transactions increase from Rs 10,000 (in September 2016) to Rs 25,000 monthly. Mobile wallet transactions need to increase from current level of Rs 32 billion to around Rs 100 billion going forward," the report said.

"This means that value per transaction needs to increase significantly from the current level of a mere Rs 425 to around Rs 1,000," the report added.

According to the report, the government should also look at specifying a certain limit for digital transactions for individuals that could be available for tax deduction.

These may be akin to tax rebates given under section 80C of the Income Tax Act.

The other measures suggested are banning all cash transactions for government services, mandatory installation of PoS machines at merchant outlets and making PAN details mandatory for any cash transaction above a specified limit.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Demonetisation bank notesdigital bankingATMsmobile walletCash transactionsPoint of saleIncome taxTechnology
Written By: IANS
Updated: Fri, Dec 02, 2016
12:35 pm
Chennai, IANS
RELATED NEWS
Demonetisation 'biggest scam of 2016': Chidambaram Demonetisation 'biggest scam of 2016': Chidambaram
Can Modi's Budget 2017 pave the road to double farm income? Can Modi's Budget 2017 pave the road to double farm income?
ITC Q3 today: Demonetisation, cigarette sales key triggers ITC Q3 today: Demonetisation, cigarette sales key triggers
49% want taxes reduced to minimise demonetisation impact: Survey 49% want taxes reduced to minimise demonetisation impact: Survey
Moody's downgrade Lodha Developers rating to B2 Moody's downgrade Lodha Developers rating to B2

LATEST NEWS

Gold set for weekly gain on Fed pause bets

Coronavirus cases in India: Active Covid cases in country dip to 3,736

BRICS pitches for using local currencies in international trade

New blood test that can detect 50 different types of cancer shows progress

Coromandel Express accident: 70 people dead, over 350 injured, say officials as 12841 Shalimar-Chennai train derails in Odisha's Balasore

Bangladesh unveils $71 billion budget on digital economy, cashless society

Mumbai-Goa Vande Bharat Express: Timings, stoppages, route and travel time

Paytm Payments Bank tops with almost 40% market share among merchant acquiring banks

Apple WWDC 2023: iOS 17, VR Headset, 'several' Macs expected

Ponniyin Selvan II premieres on Prime Video — check OTT release date

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV