RBI Governor Raghu Ram Rajan, participating at the NASSCOM summit yesterday at Mumbai said that a mechanism is being worked out to allow persons not having accounts to withdraw money from ATMs.
Explaining the mechanism, Raghu Ram said “Essentially, the sender can have the money withdrawn from his account through an ATM transaction. The intermediary processes the payment, and sends a code to the recipient on his mobile that allows him to withdraw the money from any nearby bank’s ATM.”
The mechanism needs a technical collaboration and integration with mobile companies. RBI has recently prepared a technical report on the modalities of mobile banking through SMS that can work on any model of mobile and network. The mechanism can be a great boon to persons in rural areas where an entire bank branch may not be feasible. The ubiquity of mobile telephony coupled with setting up some ATMs, fixed or mobile, can help many disenfranchised persons in a vast country like ours.