Posted in Economic, General Studies 3, Science and Technology

Micro ATM

What are Micro ATMs?

  • It is the advanced version of Point of Sale (PoS) having an additional feature of Biometric scanning.
  • It is also known as a mini version of ATMs.
  • Technically they are not fully automated but assisted by a trained bank professional or Bank Correspondent.
  • These machines are connected with the GPRS (General Packet Radio Service) mobile internet and it uses the Core Banking Solution (CBS) platform to perform the different types of services.  Hence it uses 2G Technology, so the villages with the poor mobile network can also benefit from this.

What services does Micro ATM provide?

The Micro ATMs can perform following transactions –

  • Cash Deposit
  • Cash Withdrawal
  • Fund Transfer
  • Balance Enquiry
  • Service Request acceptance
  • Aadhar Seeding
  • eKYC based saving account opening

How Does Micro ATM works ?

  • Bank appoints Banking Correspondents (BCs) to run these machines.
  •  When we swipe our debit card then the PoS automatically reads the electronic data of the card. Then it asks to enter the PIN or, it uses biometric scanning for authentication of the customer. 
  • The PoS is connected with a host computer through Core Banking Solutions (CBS).
  •  After verifying everything, as per the customer need the service is provided very easily. 

Negative News about Micro ATM

Fingerprints cloning gang busted in Azamgarh; one held, four .. 

Read more at:

Posted in UPSC

GS 1 Prelim 2019/2 (Solved)

updated on June 6th, 2019

GS 1 Prelim 2019/2 (Solved)

2. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

(a) To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit

(b) To support the infrastructure projects of Central and State Governments

(c) To act as an independent regulator in case of applications for loans of Rs. 50 crore or more which are under consortium lending

(d) To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending

Answer is ‘D’

Direct Question from the news papers , the state below is Right .

  • To aim at faster resolution of stressed assets of ₹ 50 crores or more which are under consortium lending
  • By this, the bad loan is either sold or bought by a single bank and hence, they can resolve it fast.
  • For further read NPAs And Stressed Assets

Related questions from the past

 With reference to the governance of public sector banking in India, consider the following statements :

1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.

2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer is ‘B’

for analysis of this question see GS 1 prelim 2018/96

The NPAs and their resolution might find its place in future UPSC questions .So follow them sincerely in News .

PS : How to prepare Indian Economy for UPSC ?

Posted in Prelims

GS 1 prelim 201/40

updated on March 26th, 2019

40. What is the purpose of setting up of Small Finance Banks (SFBs) in India?

1. To supply credit to small business units

2. To supply credit to small and marginal farmers

3. To encourage young entrepreneurs to set up business particularly in rural areas.

Select the correct answer using the code given below :

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer is ‘A’

As per RBI Guidelines, “The objectives of setting up of small finance banks will be to further financial inclusion by (a) provision of savings vehicles, and (ii) supply of credit to small business units; small and marginal farmers; micro and small industries; and other unorganised sector entities, through high technology-low cost operations.” It will thus support unserved and underserved sections.

However, apart from the provision of credit, there is no explicit provision that SFBs have been set up to encourage the setting of businesses in rural areas. Statement 3 will be considered wrong.

Logical thinking !!! Industries should be setup in area which are well connected to the source of Raw Material and Marketplace . Other infrastructure are also needed apart from capital like , trained workforce , spare part market , roads , high speed internet ( as everything is online now ) . So starting a business in rural area is always an bad idea unless it has a source for raw material that is reduced in size or weight ( Can you think of some industries , in which the raw material quantity is more and finished product is minimal ?( See Comments ). Secondly , the industry is too much labour oriented . Ofcourse you find cheap labour in villages . Think of labour intensive industries !!!!!