Hyderabad : Banks are working on setting up ‘Rural ATMs’ for dispensing currency notes of smaller denominations, RBI’s Deputy Governor R Gandhi said.
“We have encouraged banks to find a solution for bringing in rural ATMs. Typically in city or urban centric ATMs, they will disburse high denomination notes (Rs 1,000 and Rs 500), whereas in rural areas, people will be requiring more of lesser denomination,” he said in response to a query during a event.
“So, banks will have to find an appropriate technology solution for a different type of ATM to care for the needs of the rural people. Banks are working on that. Hopefully they will come forward to put ATMs in rural areas (with this new technology),” he said. The Reserve Bank of India (RBI) has initiated a move to allow banks to mobilise all unclaimed and unused deposits to form a fund that would be utilised for educating customers about banking and other related aspects, he said.
