Now, passbook update at ATMs

Gone are the days when you had to wait to get your passbook updated. Now you can withdraw money and simultenously get your passbook updated at the automated teller machine (ATM) instantly. Welcome to the world of self service. Banks in association with NCR, a technology company, are planning to get the self service technology in India.

With the Reserve Bank of India (RBI) making issuance of passbooks mandatory, banks are looking at cheaper options to offer this service to their customers. ``In countries such as Spain, United Kingdom, Canada and Argentina, NCR in association with banks, offer the service of printing of passbooks through ATM machine. In India, the ATM devices installed by NCR has factored in this ability. We see a huge opportunity for self check out technology in sectors such as retail, airlines and healthcare. This gives us huge business opportunities in India,'' said Malcolm Collins, senior vice president, financial solutions division, NCR.

However, implementation of the self check out technology will not be easy in India. The company will have to adapt the technology to Indian conditions. "Every passbook update costs the bank Rs 70 to Rs 80. The updating of passbooks at ATMs is a good concept but in India we have major bandwidth problem. Banks will have to train customers, there could be instances where in the passbook could get stuck in the printer. The customer wait time at the ATM will also increase,'' said a retail banking head of a private bank.

The ATM penetration in India is also a matter of concern. Currently, the ATM penetration level in India is about 23 ATMs per million people. While in countries such as China, Mexico, South Korea, the US and Canada, it is higher. However, public sector banks like State Bank of India and Canara Bank are ramping up their ATM network rapidly.

Recently, NCR bagged a contract to install 3,000 ATMs for SBI. Canara has also signed up with NCR for installation of about 2000 ATMs. This deal includes installation of biometric ATMs as well.