ATM usage rising among Indians, says survey

Mumbai, May 18 (UNI) More people in India are now moving towards using the ATM for their banking needs, according to a 2006 survey by Banknet India.

The survey says that 95 per cent people now prefer this modern channel to traditional mode of banking. Almost 60 per cent people use an ATM at least once a week. Increased ATM usage is also helped by the fact that customers now have the flexibility of using ATMs of other banks, as most of the banks are part of major interbank networks like National Financial Switch (NFS), Mitr, BANCS, Cashtree and Cashnet, a release here today said.

ATMs are seen to be more than mere cash dispensing machines as customers use ATMs to recharge their mobile phone pre-paid connections, pay their utility bills and even mutual fund transactions.

In view of growing importance of ATMs in India, Banknet India is bringing out a comprehensive 'Report on Indian ATM Industry'. The report also includes ATM User Survey by Banknet India.

This report will be released at 'Conference on Indian ATM Industry', to be held on May 31 in Mumbai. Prominent speakers from major banks and ATM industry will discuss on key areas related to growth&usage of ATMs in India, ATM networks, security and related issues, key trends and challenges. In addition there will be a special session on kiosks.

ATMs have been used by banks not only to expand their reach to customers, but also to offer value-added services.

Blanket India CMD Anurag Khanna said ''Now ATMs are increasingly seen as a tool for financial inclusion - the introduction of biometric ATMs, has led this channel to expand a bank's reach to the rural masses.'' There is also interest towards white-label ATMs. Many companies are interested in this model, where the ownership of the ATM will not be with the banks but with third parties who deploy them and make money on fees charged on every transaction.

Number of ATMs installed in India has grown by almost 20 per cent, from 17,642 last year, to more than 21,000 by March last year.

Wide acceptance of ATMs by consumers, introduction of biometric ATMs, and various value-added ATM services will maintain growth in the industry, he said.

Banknet India, promoted and managed by senior bankers, is focused on banking knowledge, research and conferences. Banknet India brings out publications and reports specific to banking, IT-BPO industry based on extensive industry research and surveys Banknet India is also one of the largest organizers of banking industry conferences.

Banknet India's online banking and technology portal www.banknetindia.com is ranked among the top 25 banking sites and the top 20 banking technology sites in the world, the release added.

UNI