Micro ATM is a mini version of ATM. Micro ATMs like modified point of sale terminals. Micro ATMs can connect to banking network via GPRS to perform banking transactions. This machine contains card swipe facility and fingerprint scanner. These machines are carried by bank representative at remote/mobile locations where bank branches cannot reaches. These machines are handy and not capable of keeping any cash. The cash is carried by the bank representative along with him/her. He/She is also responsible for collecting a cash and depositing it user account.
Micro ATMs are an extension of banking network because it provides various banking services in remote and rural area where earlier normal ATM and banking facilities cannot reach. Micro ATMs provides facility for the transaction for all banks. However, it is mandatory to link your Aadhaar card with your bank account in order to use this facility.
How Micro ATM Works?
Working of Micro ATM is similar to normal ATM machine.
- Firstly, you need to undergo via a verification process. For the verification process, Aadhaar card with fingerprint scanning or card swipe option is provided.
- Once verification is completed Micro ATM will display various transaction options like – cash deposit, fund transfer, balance enquiry etc.
- You need to select the option and device will process the transaction.
- On successful transaction, a message will be displayed on the screen and print receipt is generated.
- You will also get SMS alert from your bank about the transaction.
The Micro ATMs can perform following transactions –
- E-KYC based account opening – Bringing paperless account opening to the under banked and unbanked areas, customers can open their bank account just by linking their Aadhaar Number and biometric authentication on Micro ATMs.
- Cash In/Out – With the help of Micro ATMs customers can withdraw from and deposit into a bank account of any bank.
- Service request – Various account services like – balance enquiry, mini-statement, account updation etc. can be easily done by customers on Micro ATMs.
- ATM transaction – Micro ATMs can support all the transactions that can be normally conducted at regular bank ATMs.
- Utility payment – Customers can make various utility payments like – payment of electricity bill, water bill etc. very easily with the help of Micro ATMs. Thus Micro ATMs remove the need to visit the offices of utility providers.
Benefits of Micro ATMs :-
- Cheaper than ATMs – The operating expenses of Micro ATMs are very less than the normal ATMs as it does not require security gourd or no need to pay premises rent or no need to spend huge amount on maintenance. Also the cost of Micro ATMs is very less as compared to normal ATMs.
- Portable – Unlike the regular ATMs, Micro ATMs are non- bulky in nature as a result of this Micro ATMs are easy to carry from one place to another.
- Inter-operable device – Micro ATMs are inter-operable device and it can work for any bank. In other words, MicroATM provides facility to do the transaction for all banks. However, it is mandatory to link your Aadhaar card with your bank account in order to use this facility.
Disadvantages of Micro ATMs :-
- Micro ATMcannot provide ‘anytime’ money. For example:- if the bank correspondent is unavailable or the shop keeper has shut his shop, the account holder will not be able to undertake any financial transaction.