Those without bank account can soon receive money from ATMs: Raghuram Rajan

Rajan asserted that systems will take care of all the issues around security including safeguards of customer identification.

Mumbai | Updated: February 14, 2014 10:20 am
 Rajan said the move is driven by the lack of having a formal bank account by millions of our countrymen. (PTI) Calling this as one of the benefits of the modern technology, Rajan conceded that mobile companies are already providing such services. (PTI)

RBI Governor Raghuram Rajan on Thursday said individuals without a bank account will soon be able to receive money from those with bank accounts, using automated teller machines (ATM).

“We have recently approved the in-principle setting up of a payment system which will facilitate funds transfer from bank account holders to those without accounts through ATMs,” he said, delivering the DR Gadgil lecture here.

Rajan said the move is driven by the lack of having a formal bank account by millions of our countrymen and also explained how the mechanism will work.

The sender can have money withdrawn from his/her account through ATM machines, he said. “The intermediary processes the payment, and sends a code to the recipient on his mobile that allows him to withdraw the money from any nearby bank’s ATM,” he said.

Rajan asserted that systems will take care of all the issues around security including safeguards of customer identification, transaction validation and velocity checks.

Calling this as one of the benefits of the modern technology, Rajan conceded that mobile companies are already providing such services and laid emphasis on the need for more such innovative products.

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  1. T
    TIHARwale
    Feb 14, 2014 at 6:54 am
    RBI Governor needs to seek explanation from Chiefs of SBI and other Public Sector Banks how come inspite of large branch network and No frill accounts where the account holder has to maintain Rs 5 as minimum balance and system is capable to ensure credit into such an account has to be within Rs one lakh what is preventing Banks in opening accounts to every Indian. If RBI Governor cannot take to task SBI & PSBs then Sahara Group will get boost to inform Supreme Court that is why they repaid and accepted deposits amounting over Rs 20000 Crores by cash from depositors each with value less than Rs 10,000/-
    Reply
    1. T
      TIHARwale
      Feb 14, 2014 at 6:54 am
      RBI Governor needs to seek explanation from Chiefs of SBI and other Public Sector Banks how come inspite of large branch network and No frill accounts where the account holder has to maintain Rs 5 as minimum balance and system is capable to ensure credit into such an account has to be within Rs one lakh what is preventing Banks in opening accounts to every Indian. If RBI Governor cannot take to task SBI & PSBs then Sahara Group will get boost to inform Supreme Court that is why they repaid and accepted deposits amounting over Rs 20000 Crores by cash from depositors each with value less than Rs 10,000/-
      Reply
      1. K
        KRA
        Feb 14, 2014 at 3:04 am
        Is that the Sonia Bank doling out taxpayers money?
        Reply
        1. K
          KRA
          Feb 14, 2014 at 3:04 am
          Is that the Sonia Bank doling out taxpayers money?
          Reply
          1. S
            SUDHARSAN
            Feb 13, 2014 at 6:29 pm
            Not all the money,remain unaccounted is just not black money alone,it's the money lying with the vast majority of the Indian poce,who either not felt the necessity for a rout through an accountable mechanism.Unless, this sector is roped in automatically into, an accountable mechanism:,the hapless & honest bank accounties, will continue to bear the,brunt of ever ladden tax burdens,without any respite.Raghuraman Rajan, is on the right track.
            Reply
            1. S
              SUDHARSAN
              Feb 13, 2014 at 6:29 pm
              Not all the money,remain unaccounted is just not black money alone,it's the money lying with the vast majority of the Indian poce,who either not felt the necessity for a rout through an accountable mechanism.Unless, this sector is roped in automatically into, an accountable mechanism:,the hapless & honest bank accounties, will continue to bear the,brunt of ever ladden tax burdens,without any respite.Raghuraman Rajan, is on the right track.
              Reply
              1. S
                Sudheer Thaakur
                Feb 13, 2014 at 6:51 pm
                It may be technologically feasible but is it socially desirable. It can and will be misused by terrorists and other disruptive elements. I am for all money to be fully trackable all the time. This is regressive and not desirable.
                Reply
                1. S
                  Sudheer Thaakur
                  Feb 13, 2014 at 6:51 pm
                  It may be technologically feasible but is it socially desirable. It can and will be misused by terrorists and other disruptive elements. I am for all money to be fully trackable all the time. This is regressive and not desirable.
                  Reply
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