Hyderabad: In order to expand banking operations and make it available at the remotest location, banks have been working on setting up ‘Rural ATMs’ for dispensing currency notes of smaller denominations, RBI’s deputy governor R. Gandhi said on Monday.
“We have encouraged banks to bring in rural ATMs. Typically in cities ATMs disburse high denomination notes (Rs1,000 and Rs 500). But, in rural areas, people will need notes of lesser denomination,” he said in response to a query in financial sector conclave organised by FICCI.
“So, banks will have to find an appropriate technology solution for a different type of ATM to care for the needs of rural people."
"Banks are working on that. Hopefully they will come forward soon to install ATMs in rural areas,” deputy governor said.
The RBI has initiated a move to allow banks to mobilise all unclaimed deposits to form a fund that would be utilised for educating customers about banking, he added.
