Banks Shut Down More Than 2,400 ATMs In Ten Months For Cost-Cutting

The Logical Indian Crew

May 8th, 2018 / 3:48 PM

Image Credits: Indian Express

The nation has not forgotten the frustration to see ‘no cash’ displayed on ATMs at the time of demonetisation. Now, banks are employing reduction in the number of ATMs to save costs. Between May 2017 to February 2018, around 2,000 ATMs were shut down by the banks for “cost-cutting”. The reduction was noticed both on onsite ATMs (located within the branch) and offsite ATMs. As of May 2017, there were 1,10,116 onsite ATMs, which came down to 1,07,630 on February 2018, i.e. reduction of 2,486 ATMs, as per the data revealed by The Reserve Bank of India.


Reduction of ATMs by some of India’s banks:

Bank Reduction of onsite ATMs Reduction of offline ATMs
Bank of India 108 100
Canara Bank 189 808
Central Bank 27 317
Punjab National Bank 655 457

However, for SBI, while the number of onsite ATMs decreased by 2,645, the number of offsite ATMs increased by 2,763.

Banks are using various ways to reduce cost. According to Business Standard, banks are taking the following measures for cost-cutting in ATM installation.

  • Earlier, installation of ATMs used to cost around Rs 5,00,000. However, now they are installed for around Rs 50,000-60,000.
  • The space occupied by ATMs were 100 sq feet, but now they can be installed in just 30-40 sq feet.
  • E-surveillance would save the money to appoint 24*7 guard.
  • Doing away with facilities like air-conditioning.
  • In remote locations, ATMs would be shut down at night.

Earlier, it was reported that banks might soon stop free services like ATM transactions beyond a certain limit, issue of chequebooks and debit cards as lenders came under pressure from taxmen. Tax authorities have reportedly sent notices to banks for providing free services to the customers with minimum balance in their account. Banks have been asked to pay tax for these services for last five years, which includes the pre-GST era. If reports are to be trusted these banks are State Bank of India, ICICI Bank, HDFC Bank, Kotak Mahindra Bank and Axis Bank.


Contributors

Written by : Ruchika Jha

Edited by : Pooja Chaudhuri

Share your thoughts..

Related Stories

Google Plus Found Data breach

5 Lakh Users Data Exposed, Google To Shut Down Google+ Within The Next Ten Months

Loan Written

Since 2014, Loans Over Rs 3 Lakh Cr Written Off, Seven Times More Than The Recovery In Public Sector Banks: RBI Data

SBI ATM RTI

After 21 Months Of Demonetisation, 18,135 SBI ATMs Still Can’t Dispense New Notes: RTI Reply

Violence Cost India More Than 80 Lakh Crores In PPP Terms In 2017, Claims Report

Bihar: More Than 3,400 Young Men Kidnapped By Brides’ Families For Forced Marriage In 2017

India Slips Ten Position Down To 42nd In The Annual Global Democracy Index

Latest on The Logical Indian

Awareness

Made In India Stents Just As Good As Their International Counterparts, Study From Germany Shows

Exclusive

This Website Needs Your Personal Details For NaMo T-Shirts. Here’s Why It’s Worrisome

News

Monkey Menace: Two People Killed In Agra On Same Day; Monkey Population Reaches 50,000

Exclusive

My Story: “I Saw A Kid Staring At The Ferris Wheel, He Didn’t Have Money Or Courage To Go Up”

News

On Family’s Request Kathua Victim’s Lawyer Removed From Case Over “Non-Appearance” In The Case

Awareness

Low IQ Among Indian Children, Is Iodine Deficiency The Secret Reason?

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.