The Hindu Business Line : Banks gear up to keep ATMs fully loaded

Mumbai, Nov. 5 Diwali is a season when purchases increase and people spend more. Though credit and debit card activity sees a rise during the festive period, cash still seems to be the most preferred mode of payment. The number of ATM transactions also increases, sometimes by as much as 100 per cent and volumes of cash transacted through ATMs increases by as much as three times, during this period.

To face this challenge, banks deploy teams that work round-the-clock to ensure that the ATMs do not run out of cash and the downtime (time that an ATM does not function) is minimal.

The preparation starts before the festival period sets in, when banks start the maintenance and servicing of their ATMs.

Mr Aspy Engineer, Vice-President, Retail Banking, AXIS Bank, said that during Diwali there is heavy demand for cash as not everyone is comfortable using credit or debit cards. “People usually withdraw cash outside a mall and use it for purchases. Therefore, there is pretty heavy demand for cash during this period. The increase in ATM transactions could be as high as 50-80 per cent,” he said.

As most banks monitor their ATMs on an hourly basis, they get regular alerts when the stock of cash runs out, which helps them respond immediately, he pointed out.

“On a normal day we might not fill the cash cassette in the ATM. But during the holiday season, we may have to load up to two cassettes depending on the denomination of notes used,” he explained.

The frequency of cash collection from retailers also increases by two to three times during this period, said Mr Atul Jhamb, Group CEO, Writer Corporation, a logistics major that provides cash in transit services.

Addl insurance cover

“During the festive season we often have to reschedule the routes of our vans based on market, customer and past trends. We also increase the number of people deployed for the job of ATM maintenance and cash replenishing by 15 per cent. This includes drivers, ATM operators and security guards,” he said.

Even additional insurance cover is taken for a month or so, as the amount of cash that is transported is huge, he added.

ICICI Bank has a separate currency management team that works round-the-clock, to ensure continuous supply of cash, said Mr Sanjay Tikotekar, General Manager, Retail Infrastructure Group and Facilities, Management, ICICI Bank.

biggest challenge

“The biggest challenge is to ensure continuity of service and to see that cash is available all the time. We have observed that transaction volumes increase roughly by 10-15 per cent during this period,” he said.

The reason for huge demand for cash is because some Diwali-related purchases such as firecrackers, can be done only by cash, he said.

“Also, given the Indian tradition of gifting cash to domestic help and drivers, people usually withdraw huge amounts of cash during Diwali,” he added.

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