Micro ATM (Automated Teller Machine) services refer to a financial service that allows individuals in remote or rural areas to perform basic banking transactions similar to those conducted at a traditional ATM. However, unlike regular ATMs, micro ATMs are operated by authorized agents rather than banks directly. Here's how micro ATM services typically work:
- **Device**: Micro ATMs are handheld devices or point-of-sale terminals equipped with card readers, fingerprint scanners, printers, and connectivity options such as GPRS or mobile networks.
- **Functions**: Micro ATM services enable customers to perform various banking transactions, including:
- Cash withdrawal
- Cash deposit
- Balance inquiry
- Fund transfer (within the same bank or to other banks)
- Aadhaar-enabled payments and services (AEPS), which allow customers to use their Aadhaar number and fingerprint authentication for transactions
- **Authentication**: Micro ATMs typically authenticate users through biometric verification, such as fingerprint scanning, in addition to PIN-based authentication for card transactions.
- **Financial Inclusion**: Micro ATM services play a crucial role in promoting financial inclusion by bringing banking services closer to unbanked or under banked populations. They provide access to basic banking services in areas where setting up traditional bank branches or ATMs may not be feasible or cost-effective.
- **Transaction Records**: Micro ATMs generate transaction receipts for each transaction, providing customers with a record of their banking activities. This helps in ensuring transparency and accountability in financial transactions.
Micro ATM services have been instrumental in expanding the reach of banking services and promoting digital payments in rural and remote areas, contributing to the government's financial inclusion initiatives such as Pradhan Mantri Jan Dhan Yojana (PMJDY) in India.
