With Jan Dhan accounts and the government’s Direct Profit Transfers (DBT), ATM utilization has gone up in rural areas. This is most clearly seen by the pattern of elevated utilization of ‘white-label operators’ ATMs, that are used solely in rural and distant components of the nation.
ATM gamers say that the principle cause for that is that over seven years, the quantity of debit playing cards in India has doubled to 86 crore as of September 2020. And of these playing cards, 35% (30 crore) are RuPay ones issued to PM Jan Dhan Yojana accounts.
Okay Srinivas, CEO, BTI Payments, a white-label ATM operator says, “We are seeing rural demand growing despite the pandemic. One of the reasons is that the rural economy has not been as severely impacted as the urban one with the lockdown.”
The authorities help to BPL employees throughout the pandemic can also be held to have helped in half the trade take a quantum leap from 9.5% in September 2019 to 12% in September 2020.
From 3% to 2.5 lakh ATMs, India’s ATM trade has grown whereas white-label ATMs grew 14% to 24,195 as of September 2020. With increased progress proportion of white-label ATM (WLA) operators is a sign of rural progress however its not restricted to that — banks have additionally been increasing in rural areas.
Because growth was offset by the ten-PSU-financial institution merger plan, ATM trade numbers (3% progress) don’t replicate which led to closure of ATMs in city areas.
Abhijit Mazumdhar, CGM, Karnataka circle, SBI which has 58,762 or roughly 1 / 4 of the nation’s ATMs, said “The rural economy is certainly growing on the back of direct benefit transfers. We have seen that in rural branches — majority of customers are using Yono app or ATMs, and come to branches only for non-payment/ fund-transfer transactions.”