June 22, 2018

Idea to reduce queue at ATMs and have more functional ATMs

There is limit to stretch the rubber band. Beyond a point it will break. Increase in petrol, deisel and LPG should have been put on hold till January 2017 end. Anyway now that it is done there is urgent need to eliminate queue at ATMs and thousands of ATMs that have shutter down to be reversed.

The writer of this article has worked in cash management company in early 2000 and knows a way to get the situation under control straight within 15 days.

How?

Majority of the cash replenishment of ATMs is done by out sourcing. As per RBI guidelines there is a limit to holding cash in the vault of the cash management company. Then same is the provision for Banks. Add to this the cash carrying vans have a certain limit to carrying cash depending on whether they are Bullet Proof or Non Bullet Proof.

What needs to be done is increase the limits for all. Ideally the vans should be allowed to carry five times more without having to pay extra for the insurance they normally pay for the permissible limit. This way they would be able to withdraw more from RBI counters and certain banks currency chest. At present the number of vans and staff are insufficient to meet the current need. Precious time is wasted in negotiating traffic. All this needs to be eliminated as much as possible.

If approved, each van would be able to carry more cash and replenish more ATMs. In addition to the armed security of the cash management company civil police can accompany as additional security to eliminate any untoward incidence.

Any ATM within the premises of the bank branch also needs to be open. Here the cash replenishment can be done by the bank staff. Less the shutter down ATMs more the convenience.

The key to the current crisis is improving logistics. Though there is a back log of INR 500 notes printing as per reports but whatever is available has to be delivered without delay. More ATMs needs to get functional.

Writer is open to assist government with more information that can’t be revealed on open platform.

Picture Credit: Sigma Auto Craft

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