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Banks shutter ATMs as cities go digital, remove 358 over June-Aug
Decreasing ATM use in cities after demonetisation, and the increase in operational costs have forced banks to take a hard look at how they deploy ATMs. SBI, which has the largest ATM network in the country, reduced its ATM count from 59,291 in June this year to 59,200 in August, Punjab National Bank from 10,502 to 10,083, and HDFC Bank from 12,230 to 12,225.
Banks say rentals for a 7x5-sqft kiosk at airports and prime locations in Mumbai can go up to Rs 40,000 a month. Even in metros like Chennai and Bengaluru, ATM site rentals range from Rs 8,000 to Rs 15,000. Add to that the salaries of security staff and ATM operators, maintenance charges and electricity bills, and the total can range from Rs 30,000 to Rs 1 lakh a month. Electricity is a major expense as ATM kiosks have to be kept at 15-18 degrees centigrade through the day.
Banks shutter ATMs as cities go digital, remove 358 over June-Aug - ETtech
Decreasing ATM use in cities after demonetisation, and the increase in operational costs have forced banks to take a hard look at how they deploy ATMs. SBI, which has the largest ATM network in the country, reduced its ATM count from 59,291 in June this year to 59,200 in August, Punjab National Bank from 10,502 to 10,083, and HDFC Bank from 12,230 to 12,225.
Banks say rentals for a 7x5-sqft kiosk at airports and prime locations in Mumbai can go up to Rs 40,000 a month. Even in metros like Chennai and Bengaluru, ATM site rentals range from Rs 8,000 to Rs 15,000. Add to that the salaries of security staff and ATM operators, maintenance charges and electricity bills, and the total can range from Rs 30,000 to Rs 1 lakh a month. Electricity is a major expense as ATM kiosks have to be kept at 15-18 degrees centigrade through the day.
Banks shutter ATMs as cities go digital, remove 358 over June-Aug - ETtech