India Post Payments Bank to manage DOP ATMs

The Department of Posts is going to handover operations of its pan India network of 1,000 onsite ATMs to its arm, India Post Payments Bank.

IPPB, in turn, plans to engage the services of a managed service provider model. The move by IPPB to hire a managed service provider comes at a time when the RBI and the Ministry of Home Affairs have tightened the norms relating to the ATM environment.

RBI norms include implementation of cassette swap for replenishing ATMs and introduction of scheme of penalty for downtime at ATMs due to cash outs.

Further, MHA has issued guidelines in 2018, suggesting cut-off time after which no cash loading of the ATMs or cash transportation activities can be done in metropolitan and rural regions.

IPPB expects the managed service provider to replace all the existing ATMs of DoP with new ATMs on opex model.

The service provider will also be accountable for the ATMs upgrade, maintenance, cash management, customer complaints remedy and online monitoring, among others.

These ATMs will be integrated with the Bank’s existing infrastructure smoothly. IPPB will be sponsor bank and DoP will be a sub member for ATM operations.