Monitoring ATMs : Now Internet of Things sensors to help run machines on lighter operational expenditure model

CHENNAI: Not instantly spotable, but palm-sized sensors are silently streaming data on ATM vitals from room temperature to natural light sources to the movement of the security guard, leveraging Internet of Things (IoT) to help service providers run cash-vending machines on lighter operational expenditure models.

Companies such as Chennaibased Financial Software & Systems and Gurgaon's CMS Solutions have applied IoT and software-automated processes to help banks cut costs across the board by saving power, curbing pilferage, managing incidents such as stuck debit cards, and even remotely controlling the ATM to shut it whenever the security alarm goes off. IoT, which makes devices communicable and operable through wireless transmissions, is witnessing increasing application in a host of sectors such as retail, manufacturing, healthcare and banking.

In ATM management, it is fast emerging as the first-level monitor. "Remote ATM-monitoring through sensors has avoided the task of sending technicians to fix glitches at ATMs. ]

This has cut costs enormously,"said Nagaraj Mylandla, founder and managing director of FSS, which manages over 30,000 ATMs across the country for many private and public sector banks with State Bank of India, the country's biggest lender, being the anchor customer.

FSS has deployed software to detect and inform about common incidents that may happen at an ATM: card reader malfunctions, stuck receipts, low cash reserves and high degree of power wastage. The automation is executed by a package developed in-house called Active Device Monitoring, which is a sensor network bunched with software that alerts a central location about glitches.

"This takes care of firstlevel monitoring in an ATM. This process required an engineer to visit and inspect,"he added. An ATM guzzles Rs 35,000 a month on an average on operational and maintenance expenditure, with the average cost per transaction, excluding the security guard's income, at Rs 10-25. The company offers 8-10% reduction on operational costs with its IoT and software initiatives deployed over the last year. FSS is installing cash recyclers at the ATMs of its clients to funnel deposited cash into the ATM machines for withdrawal, cutting the need for cash refills.

From July, PSBs not to work on 2nd, 4th Saturdays

The wage-settlement pact between bank unions and industry body Indian Banks’ Association (IBA) includes, among others, additional holidays on the second and fourth Saturdays of a month. Cash and transfer transactions will take place as per the operations of individual banks, but RTGS, NEFT and other clearing functions will not be available on second and fourth Saturdays and other notified holidays.

The RBI has given in-principle approval for the Saturday holidays and it is expected to come into effect by July after approval from the government and the Law Ministry. The medical insurance will cover 100 per cent reimbursement for self and dependents in the staff’s family as against the earlier 90 per cent and 70 per cent, respectively. “Now, we also have a consolidated policy from four public sector non-life insurance companies which gives ₹4 lakh and ₹3 lakh as a floater cover for the family,” IBA Chairman TM Bhasin said. He added that for workmen, the arrears up to May 31 will be given immediately. For officers, the arrears will be equivalent to the DA and basic payable to them. They should get this in the June salary payable in July. Prior to that, it will be given as an ad-hoc measure, subject to approval...

Small & payment banks may get RBI licences by year-end: SS Mundra

The Reserve Bank is hopeful of issuing small and payment banks licences by the end of the calender year, central bank Deputy Governor SS Mundra said today.

"We expect that it (issuing payment and small bank licences) should happen during the course of this year. Both are work in progress and hopefully both should happen in the course of this calendar year," Mundra, who is in-charge of banking supervision at RBI, told reporters here.

It can be noted that early February as many 74 companies/entities/individuals have applied for licences to set up small banks and payments banks.

The move to allow such differentiated banks came after the RBI had found just two entities - the infra player IDFC and the micro-lender Bandhan from among over two dozen applicants-eligible for setting up commercial banks.

The RBI issued this limited set of licences in April 1, 2014, after a decade. Both the applicants are yet to begin their operations even after a year as they have time till October.

During that time, Governor Rajan had said that others could apply for small and payments banks and that going forward bank licences will be issued on-tap.

Bank of China may open first India branch in Mumbai

If things go according to plan, then the first branch of Bank of China may open in Mumbai soon.

National Security Advisor (NSA) Ajit Doval has given the security clearance for opening of the bank, and has conveyed this to Maharashtra chief minister Devendra Fadnavis.

Fadnavis had recently accompanied Prime Minister Narendra Modi on a tour of China, where he aggressively pushed for Chinese investments in the state, and had a one-on-one meeting with Bank of China chairman Tian Guoli.

Chairman Guoli, though keen to open a branch in Maharashtra, had raised the issue of security clearance by intelligence wing of the country, which he feared, might cause problems. Fadnavis is learnt to have spoken to Doval who assured the chief minister that he has no objections to the proposal.

The NSA, however, told Fadnavis that Bank of China would have to adhere to the Reserve Bank of India's (RBI) and other regulatory guidelines before setting up its branch in Mumbai for which it has to seek the central bank's permission.

The Maharashtra government wants Chinese investments in developing and financing infrastructure and believes that Bank of China setting up operations in the financial capital would be a first step in that direction

Indian Banks Association wants government to lower rates on small savings scheme

MUMBAI: The Indian Banks Association (IBA) today said it has urged the Finance Ministry to bring down interest rates on small savings schemes such as the Sukanya Samridhi and National Savings Scheme.

"We met the Finance Ministry recently and requested that the rate of interest on government's small saving schemes such as the Sukanya Samriddhi or NSC are at a level from where it should be brought down," IBA chairman TM Bhasin told reporters here today.

He said even the Shyamala Gopinath committee report had recommended that interest rate on these government schemes should be at the secondary market yield of government securities plus 25 basis points.

The rates offered in the various small savings schemes are in the range of 9-9.10 per cent currently.

"Since we have to compete with those schemes in smaller areas, we have requested that there should be some re-calibration of rates so that when banks reduce their rates of interest, there should not be any suffering from diversion of funds from the banking system to other avenues," he said.

Talking on the forthcoming monetary policy review on June 2, Bhasin said he expects some easing in the repo rate and also said the bankers have sought a cut in cash reserve ratio.

"I think with inflation easing there is a possibility that there may be some recalibration of rate. As far as bankers are concerned, the preferable mode is more on passing on the CRR cut which gives us some leeway in reducing the rate of interest on advances because we have surplus liquidity available with us in the system as credit offtake is not there," Bhasin said.

He said since the liquidity condition in the banking sector is comfortable, bankers are not borrowing from the repo window.

"We have always requested RBI that there be some cut in the CRR so that the cost of funds also comes down. We expect 50 basis points cut in CRR," Bhasin said.

He said a 50 basis points cut in the CRR will release around Rs 40,000 crore in the banking system.