May be in a year’s time India will have so many ATM machines that we won’t have to stand in queues. Also, more such machines would mean we would get to withdraw from same bank ATM and save those money deductions.
Japan-based company Hitachi has set up a unit to manufacture ATM machines in India. Hitachi Group will invest Rs 100 crore in the firm that has been set up in Bengaluru. Hitachi set up around 5,000 ATMs last year. Currently, there are about 2 lakh ATMs and CDs (Cash Dispensing ATMs) operating within India.
With the growing banking sector in India, there is an immediate need to come up with more money-dispensing machines. Although urban India has no dearth of ATMs, there is still a lot to be done in the tier II and tier II cities.
The initiative by Hitachi is an extension of Prime Minister Narendra Modi’s ‘Make in India’ programme. The project in Bengaluru will create jobs, besides contributing to the country’s economic development.
Hitachi will start producing the machines in June, with an aim to make nearly 1,500 ATMs every month by this year-end. Going by this number, we can hope for a spurt of ATMs across the nook and corners of India.
The move would allow Hitachi to accommodate the needs of the market, strengthen the cost competitiveness, shorten the production lead time from order entry to shipment and expand the business of ATMs, according to an official of Hitachi.
“India is one of Asia’s largest ATM markets on account of the country’s high economic growth rate of (around) 7 per cent and because it is the world’s second most populous country… The Indian ATM market is expected to continue to expand in future,” a company official said.
Hitachi-Omron Terminal Solutions had entered the Indian market in 2010 through sales of the cash recycling ATMs.