Micro ATMs are handheld point of sale terminals used to disburse cash in remote locations where branches are not present because of connectivity issues, or where setting up a traditional ATM may not be viable.
How do micro ATMs work?
- In order to reach people in such areas, banks assign a banking correspondent who will sign up customers in far flung areas, verify their identity, and deposit or disburse cash.
- The banking correspondent carries a micro ATM, which is similar to the small machine you use in retail stores to swipe your debit or credit cards to purchase goods.
- While opening a bank account, the banking correspondent usually takes the fingerprint of the rural customer, which can be used as an authentication tool in place of a signature.
- The fingerprint and personal details may also be linked to the Aadhar Card, which can be used as the Customer ID.
- Micro ATMs come with cellular data connectivity to send data for verification and disbursement to the bank, where the details are verified on the server side.
- These handheld machines accept debit cards or smart cards to initiate the process, and some models have fingerprint sensors to verify the identity of the customer.
- Once the identity is confirmed and the transaction approved by the bank servers, the banking correspondent hands over the cash to the customer.
