DEMONETIZATION: THE NEED OF MORE ATMS

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Ever since the announcement of Demonetization the use of ATM machines has increased in India and now people are also facing the problem of shortage of ATM machines in India. Well, India is a large country but still it has around 2 lakh ATM machines only, which is very less whereas America has more than 4 lakh who’s population is around 30 Crore and India have four times more population than of America so it should have more than 10 lakh ATM machines at least.

According to a recent survey done by RBI, one out three ATM in India don’t work which make the situation worse along with Demonetization effect. A report of 2012 suggest that around 59% ATMs are controlled by SBI and around 95% of them work well a new report suggest, which is a good news if you are a State Bank customer but why other banks are not opening ATMs well there a financial logic behind this, A 2014 report suggest that a bank has to spend around Rs50,000 ($741) every month on ATM which is quite high and difficult to recover as ATM charges are very less in India.
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Indian Government in recent years has done everything to increase the number of ATMs in India, most ATMs installed in last decade which is good news but still a lot more ATMs are required. Banks are focusing on big cities but the real problem is in villages, yesterday a person was telling on TV that there is only one ATM for hundred villages in their region which is a very bad news and it shows that India is hiding its failure of growth behind the development of Big cities which technically is the result of private industry and people’s hard work not the result of Government efforts. The government must ensure at least one ATM in every Village only after that the dream of Digital India will become true.

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