Advertisement
Monday, Nov 29, 2021
Outlook.com
Banking

Planting Cash Crops

The ATM’s hip, hassle-free and happening. For PSU banks, it’s the new money order upcountry.

Planting Cash Crops
Planting Cash Crops
outlookindia.com
-0001-11-30T00:00:00+05:53

Cash is nice. And large dollops of it are nicer. It’s been a fact in semi-urban and rural India for some time. One that public sector banks are waking up to, though a little late in the day. Tired of pushing the inflexible contours of the plastic money market in the metros and other big cities to expand business, banks are now speed-installing automated teller machines (ATMs) in mini metros and smaller cities.

One of the late entrants is the giant State Bank of India (SBI). The bank has only about 200 ATMs in place across the country. Until last year, the SBI had failed to realise in time the tremendous potential of anytime money in the Indian market. The same thing had happened to the bank in the case of credit cards-deliberations continued with American Express for long before Amex was replaced with GE Caps and the SBI card launched last year. In the case of ATMs, however, the bank moved faster. Because it was hamstrung by a deal it had entered into with its trade unions. The deal limited the bank’s expansion of ATMs beyond a certain number. It was a self-inflicted wound for a bank which has the widest reach in the country-9,000 branches and a 20-million customer base.

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Omicron In India: Five Steps To Stop Outbreak Of New Covid-19 Variant

Omicron In India: Five Steps To Stop Outbreak Of New Covid-19 Variant

Cases of Omicron, the latest variant of Covid-19, have not yet been reported in India.

Omicron Shows Why Countries Need To Start Sharing Their Vaccines

Omicron Shows Why Countries Need To Start Sharing Their Vaccines

'Despite the repeated warnings of health leaders, our failure to put vaccines into the arms of people in the developing world is now coming back to haunt us', wrote former British PM Gordon Brown.

1st Test: India, New Zealand Share Honours After Enthralling Day 5

1st Test: India, New Zealand Share Honours After Enthralling Day 5

Needing 280 runs on the final day, New Zealand thwarted the famed Indian spin attack at Green Park to settle for a fascinating draw.

How New Covid-19 Variant Is Impacting Travel Across States In India

How New Covid-19 Variant Is Impacting Travel Across States In India

India has issued fresh travel restrictions for international travellers coming from 'at risk' nations in the wake of the Omicron outbreak across several countries in the world.

Advertisement