Banks start closing down offsite ATMs, prefer onsite service

By Lokmat English Desk | Published: March 5, 2021 05:45 PM 2021-03-05T17:45:01+5:30 2021-03-05T17:45:01+5:30

Aurangabad, March 5: Most of the banks have decided to close offsite ATMs other than their bank branches. Its ...

Banks start closing down offsite ATMs, prefer onsite service | Banks start closing down offsite ATMs, prefer onsite service

Banks start closing down offsite ATMs, prefer onsite service

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Aurangabad, March 5:

Most of the banks have decided to close offsite ATMs other than their bank branches. Its implementation has also started. ATMs in shopping complexes, residential buildings or other places are being phased out. With the exception of a handful of ATMs elsewhere, the bank's branches will offer ATMs on their premises.

Against the backdrop of the Covid-19 and lockdown, banks began cost-cutting. As per the policy, some banks have decided to close offsite ATMs at places other than their branches. The decision is being implemented mainly in second-tier cities like Aurangabad. However, some offsite ATMs will be open considering the distance between branches and rent. A branch manager of a nationalised bank on the condition of anonymity said, "Banks have to spend a lot for offsite ATMs. This includes rent for space, CCTV, security system, air conditioning system, electricity bill, alternative power supply etc. In comparison, the number of ATM transactions is declining. Currently, an average of three to five transactions per month is free, so more than 95 per cent of customers transact within this limit. At present, nearly 80-100 ATMs have been closed down in the city. Bank customers are probably using their card in their own bank's ATM. Therefore, there are limits on the income earned through interbank transaction fees. As a result, banks are losing out on ATMs. Similarly, the use of online payment apps has also brought down ATM use."

Use of ATMs declining

The use of debit cards is on the rise, and the number of people going to ATMs and withdrawing money is declining. During the demonetization and corona period, the use of notes decreased and digital payments increased. Banks also eliminated charges on debit card usage, as well as on mobile payments and internet banking. As a result, cashless transactions are on the rise. Hence it is not very feasible for banks to run ATMs, bank officials said.

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