Micro ATM's

• RBI has allowed banks to engage intermediaries, i.e. Business Correspondents (BC) to carry out specified financial transactions through public call office operators.
• The intermediaries would be provided mobile phone and fingerprint readers and would act as a Micro ATM to withdraw/deposit money across the country.
• Aadhar could emerge as a payment card linked to a savings account where government credits would be credited to the accounts directly.
• This enables banks to have immediate access to many more potential customers at the bottom  of the pyramid through Branchless Banking.
  But it requires substantial investment in technology.

Micro ATM's primarily performs following functions:

1. Cash Withdrawal.
2. Cash Deposit.
3. Balance Inquiry.
4. Remittances.

Advantages of Micro ATM's

1. Brings down the cost of cash management for banks.
2. Supports physical cash transactions at the local level.
3. Substantially reduce the risk to the bank. 

Suggested Column: http://www.thehindubusinessline.com/industry-and-economy/handouts/article4569777.ece