India to have cheque-reading ATMs soon
New Delhi: In a customer-friendly move, some banks in India are testing a technology that facilitates instant cheque encashing at Automated Teller Machines (ATMs). Government owned State Bank of India (SBI), IDBI Bank and ING Vysya Bank are a few banks that have shown interest in such ATMs. Banking regulator Reserve Bank of India (RBI) too has welcomed the move, saying it will be good for customers.
Used widely across North America and Europe, Cheque Truncating Machines (CTM) - the machines that make real-time cheque verification and clearance possible - is placed inside special ATMs, reports The Economic Times. Companies like U.S. based NCR Corporation and Diebold, who manufacture these machines are now trying to convince the banks in India to use this technology. Pradeep Sen, Managing Director of NCR India says that the company has been showcasing its CTM-ATMs to banks in India since last month.
A CTM-ATM scans the cheque inserted in and produces a digital image of the same. It sends the digital cheque image electronically to the IT network of the issuing bank for clearance. Within seconds, the amount is credited to the customer's account, which one can withdraw immediately with a debit card. An RBI spokesperson said that banks are already allowed to use CTM scanners for inter and intra bank purposes. CTM-based ATMs will be part of the real time gross settlement (RTGS) already in place in India's banking system.
NCR also plans to bring another technology to ATM users in India. "We will also be launching new ATM machines, in which you can just insert a bundle of notes of any denomination. The ATMs will read the notes, and credit the amount in your account instantly," said Sen. Currently, one has to put cash inside an envelope to deposit inside ATM. It gets credited in about 24 hours. There are over 48,000 ATMs in the country, split between three big makers - NCR, Diebold and Germany based Wincor Nixdorf.
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