Subsidies for ATMs, Cash-Recycles to be Cancelled by RBI

Subsidies for ATMs, Cash-Recycles to be Cancelled by RBI

The central bank announced that it will be no longer providing subsidies to the banks for the installation of ATMs and cash-recyclers. At present, it’s providing a subsidy of 50% or Rs. 2 lakh (whichever is lower) per ATM installation in the urban areas, and 60% or Rs. 2.5 lakh (whichever is lower) in the rural areas.

The Reserve Bank of India said that incentive schemes have been reviewed in a way that they contribute towards a cashless economy. To that end, subsidies for ATMs and CRMs have been scrapped.