The following is the ATM usage pattern in India
It may be noted that the average ticket size is Rs3,200/-. Averages are not a good statistics tool to measure data, as the average figure might be skewed. However in the absence additional information on ATM transactions in the public domain, I have relied on the RBI published data.
Cost of running an ATM :
Two types of costs are associated with ATMs.
01)Capital Cost – ATM Machine Cost, ATM premises Cost
02)Running Cost – ATM premises rent, ATM Security guards salary, Electricity, Housekeeping
The only benefit of ATMs is the option for Pin Change and Mini Statement. There are other options too viz
04)Cheque book request
However, with mBanking picking up, the above set of transactions can be migrated to mBanking.
|Sr No||Type of Cost||ATM||POS||Remarks|
|01||Machine Acquisition Cost||Yes||Yes||POS is 90% cheaper as compared to ATM|
|02||Premises Cost||Yes||No||POS terminals are part of a commercial establishment, no dedicated premises are required|
|03||Security Guard||Yes||No||POS terminals are part of a commercial establishment, no dedicated premises are required|
|04||Electricity||Yes||No||Minimal electricity cost|
|05||Housekeeping||Yes||No||POS terminals are part of a commercial establishment, no dedicated premises are required|
|06||Cash Replenishment||Yes||No||Physical cash is available at the commercial establishment, as and when cash sales are made
|07||Encourage Less Cash transactions||No||Yes||Customers can pay for their purchases through POS terminals instead of cash|
|08||Reduce carbon emission||No||Yes|
|09||Reconciliation issues||Yes||No||Reconciliation issues at POS terminals will be minimum as to complete a POS cash withdrawal transaction, a human has to hand over the cash|
Many Banks have commenced this facility, however due to various reasons the volumes did not pick up.
A concerted effort by all the Banks under the umbrella of Indian Banks Association would go a long way in migrating transactions from ATMs to POS Terminals.
a) Standardized Display board at establishments offering Cash Withdrawal facility through POS Terminals.
b) Ensuring 100% uptime
c) Double/Triple reward points for cash withdrawals through POS terminals.
d) Short Educational videos