41 pc complaints to RBI pertaining ATM malfunctioning

41 pc complaints to RBI pertaining ATM malfunctioning

"Of every 100 complaints we receive, 41 relate to poor functioning of ATMs...ATMs are supposed to finish the transaction in 60 seconds, but sometimes it feels the earlier (manual withdrawal) which took 15-20 minutes was better," head of RBI's specially-instituted committee on improving customer services, M Damodaran, said at a function here.

A maximum number of people complain about not having received cash in spite of their account showing a debit entry, he said, adding a majority of affected customers have reservations against the "disinterested" call centre executives, who do not solve their problems.

"Technology is changing...you are aiming at getting an ATM transaction done in 20 seconds, but the problems need to be solved in double-quick time," Ex-Chairman of capital market regulator SEBI Damodaran, said.

Damodaran also made a strong case for consolidation of public sector banks and questioned the logic of government owning 26 major banks, which compete with each other. "A lot of problems arise from the small size of banks.

An Indian company doing an overseas acquisition cannot raise money from a local bank, it has to go to a foreign bank. We should exert pressure for consolidation of banks," he said. On the recent discussion paper on granting new bank licences, Damodaran called for an effective way of ensuring that the new licence holders bring banking to the unbanked.

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