A device similar to ATMs has been developed to mobilise savings of low-income groups in rural areas by banks and micro-finance institutions.
"The device, developed by Financial Information Network & Operations and ATM maker NCR Corporation, has been designed to tap deposits and savings for low-income wage earners," FINO Chief Executive Officer Manish Khera said.
The self-service device will help banks and micro finance institutions to extend their services in the remote rural areas.
"We are committed to deploy 1,000 machines and has also reached an accord for subsequent roll-outs of 30,000 more machines in the next five years," he added.
FINO NCR EasyPoint 70 Tijori machines are not ATMs, but apart from instant withdrawal of funds, the machine can serve many of the banking needs that an ATM offers. Withdrawal of funds can also be done but that has to be done through a business correspondent (BC).
The machines would be owned by banks and MFIs and the cost of installation would be "competitive", Khera said.
The self-service technology would not only improve the conventional delivery channel such as the BC model by adding new levels of security, but could also become a direct channel for delivering financial services, he added.
NCR Corporation Managing Director, India, Pradeep Sen said that equipped with bio-metric technology, these machines are security fool-proof and are fitted with recognising 14 languages, including English and Hindi, to assist people in the remote areas.
