The financial regulator, the Reserve Bank of India has authorised the scheduled commercial banks to install ATM machines at their discretion at site they consider apt, without seeking its formal permissions.
Prior to this approval, the banks could install the ATM machines without the permission of the regulator only at their respective branches or extension counters.
The move is in coherence with the statement made by the bank in its annual policy for the current year-"Permits Scheduled Commercial Banks to install off-site ATMs at centres/places identified by them, without having the need to take permission from the Reserve Bank in each case," as the statement said.
Under the new directive, the banks are however required to submit the details of the off-site installation in the ‘terms of general permission' to the respective regional offices. The central bank also reserves the right to issue any directions regarding the such off-site installations, including shifting or movement of any such machine.
RBI has also asked the banks which provide cash deposit facility at the ATMs, to take necessary steps to protect the interests of both, the customers and the banks. These include security measures like password access and identification of depositor, when forged or defective notes are found.
Earlier, the regulator had asked the banks to adopt additional security measures for online debit and credit card transactions.
With increased use of the ATM machines, banks have been reconsidering branch expansion. Banks have been working towards expansion of ATM networks to earn more revenue through increased ATM usage.