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.

RBI opens mobile banking security lab in India

 Hyderabad, August 6: The Reserve Bank of India Governor, D Subba Rao, has inaugurated a mobile banking security lab set up by the Institute for Development and Research in Banking Technology. The institute, established by the RBI, supports the Indian banking industry through innovative technology initiatives and interventions.

 

The security lab will explore solutions to the emerging challenges in mobile banking and security through research and development. Apart from providing guidance to banks in this regard, it will train participants from banks and financial institutions.

 

The RBI Governor also released the Information Security Framework draft prepared by the institute to help banks in benchmarking their systems against global best standards.

 

Stringent information security is vital as any breach in this could lead to several financial losses. The institute collaborated with 32 bankers to prepare the common framework and took inputs from ground level practitioners of information security to prepare the "easy-to-use" guidebook.

 

RBI also launched the Indian Banks' Technology Consortium that will guide banks in the realm of financial technological developments.