The Hindu Business Line : Issue ATM cards

It is surprising to know that “Banks are going slow on the issuance of debit-cum-ATM cards” (Business Line, April 11). This does not make any business sense.

It may outwardly appear that those banks that have a fewer number of their own ATMs may lose by having to incur costs ranging from Rs 15 to Rs 20 per transaction made by their customers using other banks’ ATMs. But it should still be beneficial to the banks.

The main advantage of issuing debit-cum-ATM cards is to reduce the clutter at the banking hall and cash counters, particularly in the metros, where bank branches are usually small and often congested, thanks to steep rentals paid by the banks.

Besides, the operational costs for the bank to entertain a customer within the banking premises is much higher than the cost incurred on account of ATM usage at other banks.

This is precisely the reason why most of the foreign and private sector banks persuade customers to use ATM cards extensively and some have even imposed a penalty for transacting business through branch premises.

The banks would be well advised to extensively issue debit-cum ATM cards so that they can use the time thus saved to concentrate on other core business, and also expand their own networks.

S. Ravindranath, Chennai

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