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RBI reported an increase in micro ATMs in 2022

Published on February 01, 2023
Current context: The Reserve Bank of India (RBI) reports that in 2022, there was a significant increase in the number of micro Automated Teller Machines (ATMs) installed throughout India.
RBI reported an increase in micro ATMs in 2022
  • However, after June 2022, there hasn't been a significant increase in the value of money withdrawn through these devices. In India, there were 14.19 lakh micro ATMs in use as of December 2022.
  • Micro ATMs, as the name suggests, are small, portable, handheld ATMs or card-swipe devices that also offer cardless money transfers in rural areas using the Aadhaar-enabled payment system (AePS).
  • The customer's bank account is linked to an identity proof, often the Aadhaar, which is used by the micro-ATM to identify them.
  • The RBI claims that the micro-platform will allow low-cost devices (micro ATMs) connected to banks all over India to function.
  • This would enable instant money deposits and withdrawals, irrespective of the bank associated with a particular business correspondent (BC).
  • This device, which will function through a mobile phone connection, will be accessible to every BC.
  • In December 2020, the amount of cash withdrawals was Rs. 19.67 lakh crore, which rose to Rs. 25.2 lakh crore in December 2021 but only slightly increased to Rs. 25.5 lakh crore in November 2022 when there were 13.3 lakh micro ATMs.
  • This shows a declining value of transactions per micro ATM per month.
  • During the COVID-19 pandemic, the value of cash withdrawals from micro ATMs saw a significant increase, rising 92% from Rs. 1,17,086 crore in FY20 to Rs. 2,25,041 crore in FY21 and to Rs. 2,99,776 crore in FY22.
  • Fino Payments Bank operates the most micro ATMs in India, with 3.55 lakh, followed by SBM Bank India Ltd with 3.3 lahks and NSDL Payments Bank with 2.25 lakh.

Question:

Q.1 What was the increase in the value of cash withdrawals from micro ATMs in India from Financial Year 2019-20 to Financial Year 2021-22?
a. It decreased from Rs. 1,17,086 crore in FY20 to Rs. 2,25,041 crore in FY21
b. It remained the same from FY20 to FY21
c. It increased by 92% from Rs. 1,17,086 crore in FY20 to Rs. 2,25,041 crore in FY21
d. It decreased by 92% from Rs. 1,17,086 crore in FY20 to Rs. 2,25,041 crore in FY21
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