What is Micro ATM? (Mobile Banking, Usage and benefits)

What is Micro ATM? (Mobile Banking, Usage and benefits)

On the 14th of November Prime Minister Narendra Modi held a review meeting to discuss the after effects of the demonetisation of the Rs.500 and Rs.1000 and also the problems that the public is facing. After this meeting it was announced that very soon the daily cash withdrawal limits will be increased for the convenience of the people. But the major announcement that followed this was that fact that the government, mainly for the ease of rural citizens, is the use of micro ATMs.

What is Micro ATM? (With usage and benefits)

S.NoUnknown Facts about Micro ATMsDetailed Information
1Micro ATMsPoint of Transaction [PoT] terminal
2Functions carried by Micro ATMs·         Cash withdrawal

·         Cash deposit

·         Balance enquiry

·         Remittances

3Who operates this Micro ATMsBusiness Correspondents (BCs) who appointed by the banks
4In order to perform transaction Micro ATMs requiresOnline Biometric Authentication
5Micro ATMs can also be referred asBiometric authentication enabled hand-held device

Objective of the Micro ATMs

It has been announced by the Department of Economic Affairs that micro ATMs will be set across the country in order to solve the problems that the people of the country are facing at this moment. The main target of the micro ATMs is to cater to the people of the rural and semi-urban areas of the country. These are the places where there is a lack in the number of ATMs, and to meet the demand the micro ATMs will be set up in such places.

What are Micro ATMs?

Micro ATMs are hand held point of sale machines which are used withdraw cash. These machines have been in the market quite some time now but are used mainly in the rural areas. These machines can be used to deposit and withdraw money. No matter in which bank a person has an account, one may withdraw and deposit cash to and from their account through this machine. These machines are functional in areas where banks cannot set up ATMs due to connectivity issues.

In some cases these machines allow biometric identification through Aadhaar number, use of debit card, credit card and mobile phone numbers in it as well in order to access to the bank accounts. The transaction options available through the micro ATMs are deposit of funds, withdrawal of funds, transfer of funds and balance enquiry. This machine looks like the machine that you see in retail store while making a payment through card.

How does the Micro ATM work?

In areas where banks cannot reach, they send their representatives to the customers of such areas with the Micro ATM. This machine will verify the customer and let the person deposit and withdraw money.

The Micro ATMs come with data connectivity so that the data that is been feed to the machine can be verified with the bank. Most of these machines have fingerprint sensors as well. The machine accepts all kinds of credit and debit cards.

Benefits of the micro ATMs

  • These are portable machines that can be easily carried to places. This makes the machine can ideal tool reach out to the areas where connectivity is a problem. This machine does not need an infrastructure that the normal ATM needs. It can be made available in local shops as well. This makes the functional cost negligible.
  • The micro ATM also prints receipts like the usual ATM machine or the swipe machine that you find in shops. So people can get the proof of the transaction in the printed format. Some of the micro ATM’s are also enabled with local languages for the ease of the locals using it.

Current scenario

Since the November 10th, after the announcement of the ban of Rs.500 and Rs.1000 notes, long and never ending queues outside banks and ATMs is a common site. But then there are many places in the country like the rural and semi-urban areas where there are not enough banks and ATMs for the people to change their notes. This is creating a lot of panic. So the usages of the micro-ATMs for the exchanging and withdrawing of notes in the rural and semi-urban areas comes are good news.


The current situation creates lots of unrest soul across the nation; in order to overcome those financial problems facing the Indian citizens due to demonetisation of higher value currency notes, the central government of India introduces these Micro ATMs to functions in all rural areas of India. Hope it will resolve the difficulties faced by the people especially from the rural areas would be reduced because of this launch.

Also, the involvement of Micro ATMs on distributing cash in rural areas would surely reduce the burden among the bank staffs particularly who are employed in rural branches.

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