RBI received 41 pc complaints related to ATM malfunctioning

The Reserve Bank of India receives large number of complaints out of which 41% complaints are related to malfunctioning of Automated Teller Machines (ATMs), a senior official informed. In a function head of RBI's specially-instituted committee on improving customer services, M Damodaran said, "Of every 100 complaints we receive, 41 relate to poor functioning of ATMs...ATMs are supposed to finish the transaction in 60 seconds, but sometimes it feels the earlier (manual withdrawal) which took 15-20 minutes was better."

He said the maximum complaints forward by the customers are about not having received cash in spite their accounts showing debit entry and added majority of the affected customers have uncertainties against the "disinterested" call centre executives, who don’t try to solve their problems. Ex-Chairman of capital market regulator SEBI Damodaran, said, "Technology is changing...you are aiming at getting an ATM transaction done in 20 seconds, but the problems need to be solved in double-quick time."

Damodaran also strongly took up case for consolidation of public sector banks and asked for the logic behind the government owning 26 major banks, and competing among themselves. He said, "A lot of problems arise from the small size of banks. An Indian company doing an overseas acquisition cannot raise money from a local bank it has to go to a foreign bank. We should exert pressure for consolidation of banks."

Regarding the recent discussion paper issued on granting new bank licenses, Damondaran said there is a need for an effective method to ensure that new license holders bring banking to the unbanked areas.