MICRO ATMs

What are Micro ATMs?

• Micro ATMs are card swipe machines through which banks can remotely connect to their core banking system. This machine comes with a fingerprint scanner attached to it.
  
  
• In other words, micro ATMs are handheld point of sale terminals used to disburse cash in remote locations where bank branches cannot reach.
  
  
• Micro ATMs are similar to point of sale (PoS) terminals and are a doorstep mobile banking arrangement cum-mobile ATM device.
  
  

How does micro ATM work?

• Bank will assign a correspondent who will sign up customers in remote areas after verifying their identity (fingerprint can be used as an authentication tool for rural people ).
  
  
• The fingerprint and personal details may also be linked to the Aadhaar Card, which will then serve as the ID proof required to withdraw money.
  
  

Background:

• In the aftermanth of demonetisation event, Government of India introduced micro ATMs to ensure people can withdraw money.