How do micro ATMs work? Which bank introduced them in India?

How Micro ATMs Work

Micro ATMs are portable, handheld devices that enable various banking transactions such as cash withdrawals, deposits, fund transfers, and balance inquiries. They operate similarly to modified Point of Sale (PoS) terminals and connect to banking networks via GPRS. These devices can be used with either a debit card or through biometric authentication using an Aadhaar number and fingerprint scan, facilitated by the Aadhaar Enabled Payment System (AEPS)12.

Here's a step-by-step overview of how micro ATMs work:

1. Authentication: Users can access their bank accounts by providing their Aadhaar number and authenticating their identity with a fingerprint scan1.
2. Transaction Options: Once authenticated, users can perform transactions such as cash withdrawals, deposits, fund transfers, balance inquiries, and mini-statement generation2.
3. Operation: Micro ATMs are typically operated by Business Correspondents (BCs) in remote or rural areas where traditional banking infrastructure is limited3.

Introduction of Micro ATMs in India

While the search results do not specify a single bank that first introduced micro ATMs in India, Kotak Mahindra Bank has been actively involved in launching micro ATMs across the country. They utilize their extensive Business Correspondents network to provide essential banking services in remote locations, promoting financial inclusion4. Micro ATMs have been widely adopted by various banks and financial institutions to extend banking services to underserved areas.