The Reserve Bank on Tuesday allowed banks to open ATMs outside their branches without permission from the central bank.
“It is proposed to allow scheduled commercial banks (SCBs) to set up offsite ATMs without prior approval,” the RBI said in its annual monetary policy.Online GST Certification Course by TaxGuru & MSME- Click here to Join
The RBI further said a group would be constituted to review the existing framework of the branch authorization policy for providing greater flexibility and enhanced penetration.
KPMG’s head of financial services, Abizer Diwanji, said ATM delicencing would improve banking efficiency considerably and overall cost-income ratios.
According to branch authorization policy, banks are given permission to open, close and shift all categories of branches including ATMs at a time, normally once a year, and the approval is valid for one year from the date of communication.a