The implementaion of Biometric ATMs in India is truly exploding. The advent of Biometric technology was initially purposed to reduce security problems, yet fortunately, it has also become a great tool for the advancement of banking the 'unbanked' in developing countries. Establishing the identity of a rural 
depositor through biometrics makes it possible for illiterate or barely literate folks to become part of the banking user community. It is envisaged that ATM enhancements with biometric support eliminates the need for PIN entry, and authenticates customer transactions by thumb-impressions. A simplified menu on ATMs coupled with possible audio guidance in local language can enable easy use for literacy-challenged rural masses. Following a string of installments, the Central bank has just announced their installment of a Biometric ATM in Muzzafarpur in Bihar.
India's Express Computer online journal also wrote an article this week about the usage of Biometric ATMs in India. To reach the rural masses however, and boost microfinance initiatives, banks & MFIs will need to deploy biometric solutions at POS(point-of-sale) operations not just at ATMs. Some of the new generation POS terminals are biometric enabled with smart card readers, allowing thumb-print based authentication.
Several Indian banks have started implementing biometric applications. In early January 2007, the State Bank of India (SBI) announced plans to set up 5-6,000 rural kiosks and started a new rural pilot initiative to encourage banking habits among the rural masses. In early February 2007, Dena bank launched a Biometric ATM in Balwa village near Gandhinagar and Andhra Bank announced their plans to open 150 biometric ATMs in India during fiscal 2007-2008.
In late 2006 Citibank India had launched the Pragati no minimum balance, savings account for its microfinance customers. The bank provides this & other services through biometric ATMs that speaks to customers in Hindi, Marathi, Tamil, Telugu.
Banks & MFIS have been working with various technology companies, such as AGS Infotech, Securgen, (working with ICICI) Axis Technology, CMC Limited and Financial Software and Systems (FSS) who have all launched Biometric ATM solutions.
Deploying ATMs for rural masses depends largely on banks & MFIs stepping forward to take the requisite initiatives. The recent directive from the government on financial inclusion is a key driver for the growth of such solutions in India.
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Posted by: Ejike C.O | Thursday, 10 July 2008 at 12:00