Soon after demonetisation, the focus has shifted to Automated Teller Machines.
In Karnataka, which suffers from regional imbalances, particularly in development, there is a marked lopsidedness in the number of ATMs vis-a-vis the density of the population dependent on them.
This is evident as 20 of the total 30 districts in the State have fallen below the national average of 17 ATMs per 1 lakh population.
Bengaluru City, which has a population of 95.88 lakh, has an average of 77 ATMs per 1 lakh population, followed by Dakshina Kannada (39) and Udupi (36).
But the backward district of Yadgir has just six ATMs per 1 lakh population, which is the lowest in the State.
The two coastal districts have among the highest density of ATMs because four nationalised banks, Canara Bank, Syndicate Bank, Corporation Bank and Vijaya Bank, and one private bank, Karnataka Bank, originated from these districts and the region has a strong banking network.
According to the State-Level Bankers’ Committee, the State has 15,502 ATMs as on September 2016, which translates to 1 ATM for 3,943 people.
The overall availability of ATMs in Karnataka is 25 against the country’s average of 17 ATMs per 1 lakh population. Though the State’s cumulative average is better than the national average, the district-wise figures show the poor coverage of ATMs.
Other districts which have more ATMs than the country’s average are Chikkamagaluru (19), Dharwad (24), Hassan (17), Kodagu (25), Mysuru (24), Shimoga (23), and Uttara Kannada (19)
According to the Reserve Bank of India data (as on June 2016), 61 banks, including nationalised, private and foreign, have established 2,15,039 ATMs across the country.
Poor districts
Hyderabad Karnataka, comprising Bidar, Yadgir, Raichur, Koppal, Ballari and Kalaburagi, has ranked below the national average.
Districts having single digit ATMs per 1 lakh population are: Bidar (8), Vijayapura (9), Kalaburagi (9), Haveri (9), Koppal (8), and Yadgir (6).
According to bank officials, ATMs were set up based on the number of accounts in bank branches and the existence of other bank’s ATMs. An ATM kiosk with 100 hits a day is considered economically viable.
ATM kiosks
A senior banker said that no bank was giving priority for refilling ATM kiosks resulting in them going dry.
“We are unable to fulfil the withdrawal limit of our customers from our own bank branches. That being the case, why would we fill ATMs where we cannot restrict the withdrawal to only our customers. Moreover, now that the service charge for withdrawals has also been suspended, there is no income too from these transactions at ATMs. So all banks have now decided to give priority for serving their own customers at the bank branches,” the banker said.
