Karnataka: As cashless transactions pick up, banks to shut ATMs

Bengaluru: Even two months after demonetisation, around 60% of ATMs in the city are still not functional because of shortage of currency notes. Now adding to the woes of the people, banks have now started shutting down several ATMs, saying once the people adopt digital mode of payment, ATMs will become redundant.

Officials from several banks, who wished not to be identified, said that on Monday around 60% of the ATMs in the city, especially those in the interior parts of the city, have not been loaded with cash. "Only those ATMs that are on main roads and business hubs are being supplied with cash on a daily basis. Rest of the ATMs are closed, and only guards are watching them," an officer said.

Following the demand for digital and mobile wallets increasing, banks are seriously considering permanently shutting down hundreds of ATMs in the city and focusing on strengthening digital payment systems across all sectors. An officer of a private bank said that maintaining an ATM is a costly affair as round-the-clock security and continuous note supply require large amounts of money. "As per the state police direction, we have to provide round-the-clock security and set up CCTV cameras at ATMs. It requires huge amounts of money. With city residents catching up with cashless mode of transactions, dependence on ATMs is expected to come down. We are considering shutting down those ATMs that are recording less business," he said.

Meanwhile, bank branches and post offices are not reporting long queues and the situation has returned to normal. RBI sources said that the city is supplied with enough Rs 500 and Rs 100 denomination notes to ensure that the public do not face any problem.

Digi Dhan Mela
The Union and state governments jointly organised the first Digi Dhan Mela in the state at the Jnana Jyothi auditorium in the city on Monday. All major banks and mobile wallet service providers participated in the mela. All those who wanted to opt for Aadhaar and mobile wallet services were registered on the spot. Tutorials on digital payment systems and payment bank system were held on the occasion. Majority of those who attended the Mela were farmers from different districts of the state. The state government had arranged vehicles to bring them to the Mela.