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4 Lakh Aadhaar MicroATMs Deployed: What are they?


On its official twitter handle (@UIDAI), UIDAI (Unique Identification Authority of India) posted that "more than 58 crore individuals will now use Aadhaar MicroATMs for banking without ATM card or Pin." It further said that more than 4 lakh of these MicroATMs were deployed.


What are Aadhaar MicroATMs?

A MicroATM is like a modified version of a POS (Point of Sales) device. You might have used a POS device in a super market while making a card payment. These machines allow you to make a transaction with your card, whereas in the case of a MicroATM, you will not require a card or Pin.

Aadhaar MicroATMs are like POS devices but with fingerprint scanner attached to them. This will allow the customer to perform basic banking transactions using only their Aadhaar number and fingerprint as identity proof.

These are designed for remote places with minimal or no access to bank/ATMs. The Aadhaar MicroATMS are authorized by banks, and the UIDAI performs the authentication of the biometric details.

How to Withdraw Money Using MicroATMs?

How to Withdraw Money Using MicroATMs?

MicroATMs have human bank representatives or a business correspondents (in case of shops). These representatives collect the deposits from customers or pay the cash on withdrawal. The data regarding the transaction is fed into the machine and that will debit or credit your bank account. The machine will also print a receipt showing your balance.

Since your fingerprint is used for verification, there is no need for a debit card or pin to access the funds in your bank account. Also, there are no service charges on transactions performed using Aadhaar MicroATMs.

Economically viable for Banks

Economically viable for Banks

ATMs suspending cash are expensive. The machine costs over Rs 2 lakhs and requires over Rs 20,000 in monthly maintenance charges. It proves viable only if a minimum of 80 to 100 transactions are performed per day. This is especially not feasible in rural areas where the population is fairly low.

A mircoATMs could cost around Rs 20,000 and are portable.

The downside is that is it not possible to use these for 'anytime banking' as the representatives may not be available as and when you need them.

Read more about: uidai aadhaar
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