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Payment companies that run ATMs want to be compensated

“ATMs should also be considered part of the digital payments channel and not treated only as machines spitting out cash,“ said Himanshu Pujara.

, ET Bureau|
Jan 13, 2017, 10.27 AM IST
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Further with a major chunk of the 2.02 lakh ATM network lying idle, there was a revenue loss for the companies as well.
Further with a major chunk of the 2.02 lakh ATM network lying idle, there was a revenue loss for the companies as well.
Mumbai: Payment companies which run the ATM (Automatic Teller Machine) network in the country are planning to reach out to the regulator, finance ministry along with banks for compensation against the money they lost during November and December as the major chunk of the network was shut down due to lack of cash in the system.

The total loss for the industry Rs 350 crore since most stood at about of them worked on a pay-per-use arrangement with banks, industry sources told ET.Further with a major chunk of the 2.02 lakh ATM network lying idle, there was a revenue loss for the companies as well.

“We are losing about Rs 450-500 crore worth of revenue per month since only 30-40% of the network is up and running,“ said Himanshu Pujara, managing director, Euronet Services India and South Asia, which manages ATMs for banks such as Standard Chartered Bank, Oriental Bank of Commerce and UCO Bank.

“We are planning to appeal to the government to compensate us for such losses very much along the lines of compensation forwarded to the toll collection companies.“

They are also hoping that ATMs get branded as part of the electronic payments channel as they are an integral part of the rural economy driving financial inclusion.

“ATMs should also be considered part of the digital payments channel and not treated only as machines spitting out cash,“ said Himanshu Pujara.
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