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How are Aadhar based Micro-ATMs Helping to Ease the Demonetisation Drive?

On 8 November 2016, Mr Narendra Modi, the Prime Minister of India, announced the beginning of a reform, unlike anything India had ever seen before – demonetising all existing Rs. 500 and Rs. 1000 notes. This led to a massive exercise to for helping citizens to exchange the older notes with the new Rs. 500 and Rs. 2000 notes or get them in denominations lower value.

Long queues of people have been lining up in front of banks and ATM’s ever since the common people are struggling to replace their old currency and withdraw legal tender money for use. In such a situation, micro-ATMs being introduced to ease the cash crunch people are facing. These will be Aadhar based micro-ATMs and here are the details of the same.

Aadhar based Micro-ATMs helping to ease the Demonetization Drive

Given below is everything you need to know about these Aadhar based micro-ATMs and how will they help ease the demonetisation process:

What are micro-ATMs?

Micro-ATMs as literally the smaller version of an ATM machine. Unlike a large ATM machine, micro-ATMs are hand-held machines and easily manageable.

Micro-ATMs are meant to enable individuals make basic types of transactions like cash withdrawals, cash deposits and balance inquiry. Micro-ATMs ideally allow the withdrawal and deposit of cash irrespective of the bank in which you have an account with.

The concept of Micro-ATMs is not new, they have been operating in rural and semi-urban areas since a long time where resources to build an ATM are less.

How micro-ATMs are expected to Help in solving the Demonetisation Situation?

Now, while banks are working extra and trying their best to help with the situation, the government is additionally relying on the micro-ATMs or Point of Sales devices to come into the picture and help in easing out the tension created due to the shortage of liquid cash. The Department of Economic Affairs recently said that the number of micro-ATMs will be increased in the hopes of washing out the cash crunch. The government has asked banks to roll-out over 2 lakh micro-ATMs to meet the need of customers who are facing cash crunch issues. Micro ATMs will be deployed in around 90,000 urban and semi-urban areas and around 1.1 lakh rural areas.

How do Aadhar or Bio-metric Enabled micro-ATMs work?

The way Micro-ATMs work is extremely simple. A bank appoints an agent who runs the micro-ATM and has the micro-ATM device which will enable a customer to undertake both financial and non-financial transactions through.

To use such a micro-ATM all you have to do is locate one near you, then you will have to go through a biometric identification process by providing your Aadhar Number which has been issued to you after acquiring your biometric data and by swiping your fingerprint on the micro-ATM machine.

Once the verification is completed you can go ahead with your transactions, you can either deposit or withdraw cash via the device. You can also make a transaction through your debit card and collect the money from the it. As mentioned above, ideally micro-ATMs should enable you to do transactions irrespective of the bank in which you have an account with.

We hope this article was helpful and will help you in this crisis of cash. For more such articles and latest news, watch this space for more!  

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