| To offload banks, turn swiping machines into ATMs | | | Early Times Report
JAMMU, Nov 16: Due to the long queues and heavy rush of people outside ATMs to get new currency notes of Rs 2,000 denomination, an innovative idea is taking rounds to extend ATM facility to swiping machines in showrooms, shops and at other business centres across the country.
This would lead to the lessening of rush of people outside ATMs, besides giving the much-needed impetus to the city economy that has been sagging after the demonitisation of Rs 500 and Rs 1,000 currency notes.
The idea, mooted by some businessmen of Jammu, is both innovative and workable. The Reserve Bank of India has already allowed current account holders to withdraw up to Rs 50,000 in a week, but such tenders are to be disbursed predominantly in Rs 2,000 denomination only. Several business houses, including retail and wholesale shops, showrooms and restaurants already have card swipe machines which are payment terminals provided by banks on which the businessman can swipe or dip cards to receive payments.
People have simply to go to any such shop and make a purchase of say Rs 100 or so. The customer's card would be swiped for Rs 2,100 which would be credited to the shopkeeper's account.
Since Rs 2,100 would get deducted from the customer's account against the purchase of Rs 100, the shopkeeper would be returning him a cash of Rs 2,000. "This is quite workable as the current account holder is authorised to get a cash of Rs 50,000 a week. This cash can be further disbursed to the people even when they make small purchases from the shopkeeper who has installed a swiping machine," a top businessman said.
Raman Gupta, who runs an automobile business on the city outskirts, said the government must think seriously about taking the work of ATMs from swiping machines till the crisis 'settles down'. "This will also give a jump to the business activity that has almost come to a standstill across the state after the demonitisation of old Rs 500 and Rs 1,000 notes," he opined.
"The idea is new and workable also. The only thing is that the government needs the will to act on it," Gupta asserted.
The Reserve Bank of India had on Monday said that current account holders were allowed to withdraw up to Rs 50,000 in a week in Rs 2,000 denomination. The RBI has also said that banks can deploy micro-ATMs, Bala Mitras, etc near village panchayat offices, police stations, police and military outposts, government departments, offices of public sector units, petrol pumps and other similar secure locations.
For providing exchange, deposit, withdrawal facility to people residing in unbanked areas, RBI has already allowed banks to consider using mobile vans. |
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