Various operational and commercial problems have hit the public sector bank’s ATM expansion plans, which were supported by Union Finance Ministry of India.
As per the plan, around 63,000 ATMs were to be installed in 16 locations, including 33,000 during 2012-13 and 30,000 in 2013-14.
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Of the total number, only 20,000 ATMs were installed by the end of 2012-2013 and another 43,000 were to be installed by March 2014.
Bank executives and ATM Vendors senior officials were quoted by Business Standard as saying that besides operational issues, the contract terms have turned out to be lopsided, with few obligations for banks.
The plan was also hit by the intense competition among ATM vendors to bag mandates that led to quoting higher prices. Some of the vendors that had won mandates are AGS Transact, Mphasis, FIS and Tata Group.
A Mumbai-based bank executive told the news daily that the Indian government has urged Indian Banks’ Association to hold a meeting among major banks, ATM suppliers and vendors to resolve the operational issues.
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