Digital Banking

  1. Digital Banking

The Micro ATMs are hand held devices like PoS terminals which can be used by Business Correspondents in order to provide the services like Balance Inquiry, Cash Deposit, Cash Withdrawal, Fund Transfer, AEPS, eKYC specially to the people of remote areas where ATM facilities are not available.


Micro ATM is a mini version of an ATM. These devices are like modified Point of Sale terminals that can connect to banking network via GPRS to perform banking transactions. These machines are to be carried by those Business Correspondents (BCs) at remote/mobile locations who are authorized to do so. These machines are handy and not capable of keeping any cash. The cash is carried by the authorized BC. He/She is responsible for collecting cash and depositing it into user account.

In order to have access to the bank account, this machine contains two options:

1.    Card swipe facility by use of debit card, and

2.    Fingerprint scanner which enables biometric identification through Aadhaar number

The transaction options available through the use of micro ATMs are:

a)    Cash Deposit/ Cash withdrawal

b)    Fund transfer

c)    Balance enquiry

d)    Mini-statement generation

e)    KYC based Customer_Id creation


Objectives of Micro ATMs:

a) Encourages financial inclusion by providing easy access to micro banking services in an effective manner to the rural population.

b) Micro ATM can be a significant tool in extending banking services in the remote areas.

c) It is a low cost and easy alternative to the regular ATM.

d) It is portable, thus, increasing the reach of the services.

e) Easy to carry and setup anywhere in the remote area.

f) Biometric enabled secured transactions.

g) Micro ATMs are interoperable devices that can work for any bank customer.


Charges on Micro ATM (AEPS) transactions:

For initial period, no charges will be levied on any kind of transactions under Micro ATMs (AEPS).

Operation of Micro ATM:

Micro-ATMs are to be operated by authorized BC's (Business Correspondents) in their allocated villages.

Transaction Limits/counts:

a)    For Cash withdrawal/Deposit transactions, the minimum transaction amount per day per customer has been set at Rs.100/- while the maximum transaction amount per day per customer has been set at Rs.5000/-, included both card and as well as Aadhaar based transactions.

b)   For fund Transfer transactions, the maximum transaction amount per day per customer shall be Rs.10,000/-.

Timing of Micro ATM Services:

The Micro-ATM devices are operable within the Banking business hours.  In addition to this, BC has to settle his/her cash account besides all the routine cash transactions on daily basis.

Transaction flow for micro-atms