Money & Banking

Karnataka Bank to roll out Aadhaar-enabled ATMs soon

AJ Vinayak Mangaluru | Updated on January 12, 2018 Published on June 16, 2017

Mahabaleshwara MS, MD & CEO, Karnataka Bank

To scale up UPI app too as part of digital initiative, says MD

Karnataka Bank is betting big on enhancing its presence in areas related to information technology in the national banking horizon.

Mahabaleshwara MS, Managing Director and CEO, told BusinessLine that the bank is focussing on alternative delivery channels and digital banking initiatives.

During 2016-17, digital mode accounted for around 53 per cent of the total core banking service (CBS) transactions in the bank. This was 30 per cent about five years ago.

He hoped that the recent initiatives of the government such as Aadhaar-enabled ATMs and Unified Payments Interface (UPI) will play a key role in its efforts to increase information technology-based initiatives.

He said that the bank is in the process of launching around 100 Aadhaar-enabled ATMs in the months to come. These ATMs help customers perform transactions through biometric authentication.

The bank is in discussion with an ATM service provider and the National Payments Corporation of India in this regard. Around 30 per cent of the proposed Aadhaar-enabled ATMs will be set up in rural and semi-urban centres. Of the around 8.2 million customers, three million have already been linked to Aadhaar, he said.

Karnataka Bank is also focusing on improving penetration of UPI among its users. As a part of this, the bank is exploring value additions in its UPI app to extensively use it for fee collection in educational institutions, he said.

To enable depositing and withdrawing of cash from a single kiosk, the bank will be setting up cash recyclers. The customer who credits the cash in such recyclers, can withdraw the money from the same recycler. Five such cash recyclers will be set up within two months, he said.

The bank is also in the process of launching a mobile banking app that provides tailor-made functionalities to corporate users.

When told that some customers find it difficult to handle new-age digital banking products, he said there is a need for hand-holding of such customers.

Published on June 16, 2017
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