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Use of ATMs


Information Kiosks has been introduced by many Banks and also by PSUs like Railways, Tourist centres etc. While the revenue-producing capacity of non-emergency type of information at ATMs as a stand-alone product is doubtful, many customers may be willing to pay a nominal fee for information having “impulsive” demand such as cricket scores while they wait for their transactions to be processed. To be sure, providing information, whether priced or free, will appeal to some customers and increase customer satisfaction.

Union Bank has used technology to establish Village Knowledge Centres (VKCs), which have proved to be a success in the 198 centres, where they have been set up. VKCs empower the local rural population by giving them information on various vital inputs such as weather, fertilizers, prices of crops, etc. The bank is also operating financial education centres offering counselling at 51 of these VKCs.

Third Party Advertising

In India, ATM advertising for third-party products is currently not allowed by Regulatory authorities. However, the wait time at ATMs can be effectively used by banks to promote their own brands, product and services. Furthermore, banks can tailor advertising messages based on customer information easily available in their accounting and CRM databases. Customer wait-time at ATMs while transactions get processed, typically between 10 to 25 seconds, has been profitably used by many banks for their own advertising.

Money Transfers

Indians, who have migrated abroad or to cities, regularly use money orders and wire transfers to send money to their families back home. ATM growth, especially in rural India, will capture substantial business from the expensive wire transfer agents’ network and the customer-service lacking postal network. In line with international trends, ATMs can be made capable to dispense printed money orders or initiate wire transfers against a charge on customers’ bank accounts. After addressing regulatory hurdles, these services can even be made available to non-account holders through cash payments using the currency acceptors built into ATMs. ATMs can also facilitate the encashment of wire transfer amounts by allowing even non-account holders to withdraw cash based on PINs or previously mailed special-purpose ATM cards.

Recharge Mobiles via ATMs

ATMs are also used to recharge mobile phones. Initiated in 2004 by ICICI Bank, now most ATM/Debit Cardholders are able to recharge their pre-paid subscriptions of most mobile service providers from anywhere in the country using their bank‘s ATMs or by sending a SMS.
The amount for recharging the mobile phone would be debited from the subscriber‘s Bank account and the subscription would be directly recharged accordingly. The mobile top-up facility provides convenience on ATMs and through mobile phones using SMS.

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