Suggestions for ATM Policy for India
he above discussion leads us to raise some serious questions about the ATMs, Although the fact which emerges is that there is no escape from technological advancement, at the same time, answers should be found to questions like how much of new technology should be used? In what areas of banking operations should it be used? When should it be introduced? How much the banks should charge for the new services? ATM should be introduced on a very small scale, to certain areas, in only metro cities.
In the initial phase only necessary services should be put on ATM agenda and the system should run on trial for some period. Following are some of the areas where precautions are required. 1. Security: The most important area of trouble related to ATMs will be security. Banks will have to design ways and means of fighting frauds, misappropriations, physical attack on customers using ATMs, etc. The areas where ATMs are installed should be well lit. The ingress & egress for ATM should also have sufficient lighting.
There should be adequate space for movement of the customer. Alarm system components should include shock seismic sensors, Door contacts, and heat detectors. The daily routine, which includes loading the machine, retrieving the seized cards, running totals, balancing the accounts & bringing the machine on-line again, should be done in presence of a very responsible officer. Some of the high cost security options include an on-line security camera along with the posting of a 24 hours guard.
Area Selection: ATMs can be installed in areas where there are no branches. Locations having higher density of population can be selected for installing ATMs. Highways, shopping centers, Hospitals, Petrol pumps, and other similar locations which have more cash flow, and which have more customers, can be ideal locations for ATMs provided security is ensured. The Bank of America has installed ATMs in some university campuses. While, selecting location, the crime rate in particular area should also be checked.