Subsidies for ATMs, Cash-Recycles to be Cancelled by RBI
February 10, 2018
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.