Put out your thumb for cash

TECHNOLOGY: Banks use biometric ATMs to tap the rural market.

After ATMs, here come biometric ATMs. NCR Corporation "" a manufacturer of automated teller machines (ATMs) "" is planning to roll out biometric ATMs in India which will recognise a user by his fingerprint. These ATMs do not require a debit or credit card or a personal identification number (PIN) for banking.

The company is running a pilot in India in partnership with leading banks. "The pilots are nearly through and we will soon go in for the rollout," an NCR  spokesperson says.

Besides helping villagers get access to ATMs, this would also help sort out security-related issues by minimising the use of skimmed (counterfeit) cards, he adds.

In biometric ATMs, the fingerprint of the account-holder needs to be captured and stored by the respective banks or a third party in a database to which the bank has access. A user needs to verify his fingerprint before making the transaction.

Additionally, he will be supported with voice instructions in his local language on how to withdraw money, check the balance or for any other transaction.

Biometric ATMs cost around Rs 10 lakh, much more than non-biometric ones which generally cost Rs 6-8 lakh. The cost will be borne by the respective banks, not the users. This will be a value-added service.

NCR has already deployed biometric ATMs supported by voice in Guatemala. Besides, it has deployed biometric ATMs in Chile, Pakistan and Colombia where fingerprint verification is used as an additional user authentication.

According to NCR officials, many large public and private sector banks have expressed interest in the product to expand their presence in rural and unbanked regions.

"As per the Reserve Bank of India's financial inclusion directives, banks are supposed to take their products to unbanked regions. Many are under pressure to install ATMs in rural areas. We are seeing an increasing trend where more and more ATMs are being installed in B and C-class cities. The next big wave will be in rural areas," predicts Surendarsinh N Gohil, Director, Worldwide Customer Service for NCR in the Asia-Pacific region.