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Any non-banking entity that wants to set up these ATMs must have a minimum net worth of Rs. 100 crores at the time of application. Also, they must maintain their net worth throughout their operation. This is one of the pre-requisites to receive the approval from RBI.

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Will Introduction of Private ATMs in India be successful?

I have seen such Private ATMs in USA and other developed Nations. They are very successful and are even set up in urban and city areas. However, this is a novel idea for a country like India. Only time will tell if this will be successful, but I think this will be a successful business idea because:1. ATM Penetration in rural and semi-urban areas of India is very poor. Chances of us finding an ATM in such areas is very slim. So, if private non-banking entities set up an ATM Network, it will be very useful for customers 2. Though these private non-banking entities may charge you a fee for providing the service, once competition heats up among private players in setting up these networks, the fees may come down and become cheaper All in all, this is a very good development and hopefully it will be Successful!!!


Why cant you find ATMs in Rural Areas in India?

Operating an ATM involves a lot of money. You need some space to set up the machine, a security guard to safeguard the machine, electricity, computer networking etc. Banks accept this cost of setting up ATMs in cities and posh areas because, the number of customers who use an ATM in a city area is high and adds a lot of business value to the bank. But, if the same is the case with an ATM in a rural area, it is not cost effective for banks. That is why you cant find many bank ATMs in rural areas.An Interesting Stat: There are nearly 90,000 ATMs in India. Of which approximately 80% or more are in Cities and Urban Areas.


Why would someone want to set up a private ATM?

This will be a business opportunity for the individuals/corporations setting up those machines. The RBI has given permission to those entities that set up these private ATM Machines to charge for their service. So, anyone who uses the ATM Machine to withdraw cash will have to pay a fee that will go against the service which will be the profit for the company setting up those ATMs.


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