Number of ATMs to double; will also accept deposits

NEW DELHI: The government today said banks have been asked to upgrade their ATMs to double-up as cash collecting machines as well to mobilise Rs 11 lakh crore lying as cash with people.
Also, the public sector banks have been asked to double the number of ATMs from about 63,000 in the next two years, Finance Minister P Chidambaram told reporters after reviewing working of state-owned banks and financial institutions.
"People must take to banking ... Something like Rs 11 lakh crore lies as cash in hands of people. That Rs 11 lakh crore money should not lie in hands of people, it should lie in banks," he said.
He said more people will take to banking if there are more branches and facility to draw money whenever needed and put it back into banks when they do not require it.
"Now banks have been advised to quickly upgrade their ATMs to not only cash disbursing machines, but also cash accepting machines.
"Banks should also intensify door-step banking, in bazaars, markets to collect the daily collection of shops in order to mobilise the savings of the people," the minister added.
He further said that public sector banks have about 63,000 ATMs in different parts of the country.
"The goal is to double it in two years. I am confident they will achieve it," he added.
He said upgrading ATMs to cash collecting machines will help in channelising a large part of cash lying with public in the banking system.
"Ideal banking is that money should remain in bank and I can withdraw it when I want....So the ideal is (that) all money should be in the bank," he said when asked what part of Rs 11 lakh crore should be in banks and with public.

Bizarre banking system leaves customers stumped

Patna, August 5: Bank allots customer’s locker to another person without notice. Bizarre banking system has come to the fore in two diametrically opposite cases in Bihar. In the first instance, a woman customer was left high and dry when her valuables went kaput after the locker she was operating in Allahabad Bank was allotted to someone else without intimating her. While in another case, three customers on a single day received more than the amount they had asked for, during withdrawal from the ATM of State Bank of India.

 

The first incident took place in the state capital when Rani Meena Kumari of Shastri Nagar went to operate her locker in Allahabad Bank which she had opened it in 2008. Much to her dismay, Meena found that not only her locker was allotted to a different customer, but her valuables worth Rs 4 lakh were also missing. On query, she was told that since the locker was not operated for the last two years, it was allotted to some one else. A furious Meena lodged an FIR against the bank officials at Shastri Nagar police station and wondered how this kind of faux pas could happen in a government-controlled bank. “We have received a written complaint from Meena Kumari. The regional office of the bank is looking into the case. If required, we too will begin investigation in right earnest,” said SHO of the police station, IC Vidyasagar.

 

In another instance, a customer of SBI went to an ATM at Pali market in Darbhanga and opted to withdraw Rs 3,000. But lo and behold, the machine handed him Rs 7,000, although the statement slip showed withdrawal of Rs 3,000 only. With Rs 4,000 more in his kitty, the customer laughed all his way to home. The other customer, who followed him in the queue, met a similar fate when he received Rs 5,000 from the ATM although he had asked for Rs 4,200.

 

The guard, who operated generator there, smelt a rat when he found the customer smiling sheepishly. On query, he was told about the ATM machine doling out excess amount, even though the statement mentioned only the withdrawal of money which was originally asked for. The guard then asked the customer to return the excess amount, and eventually informed the bank’s branch manager. When the officials reached the venue, they found the ATM working in a weird manner. The ATM was sealed and headquarters office informed about the snag. “Three instances of excess withdrawal have been detected. Out of which one customer has refunded the excess amount. The exact detail of net loss is being ascertained,” said a senior SBI official on the condition of anonymity.