Many places in India have very few banking facilities and financial infrastructure. Unlike urban India, the less developed parts of our country have seen very little amounts of development. This includes access to the formal financial systems. So, it is no wonder that many people in rural India turn towards unregulated and informal monetary mechanisms. The only way to change this situation is to increase availability to the regulated financial segment.
It is interesting to note that people only partake in the informal financial segment because they are forced to do so. If there is improved accessibility and awareness, people tend to prefer the regulated economy. One of the few ways for people to access cash in rural areas is through ATM withdrawals. Unfortunately, it is very common to find ATMs out of order or out of cash. This can lead to a debilitating cash crunch situation for people across vast regions of the country.
What are the Problems that Rural India Faces?
India faces a major economic problem which is a huge lack of financial inclusion across the social spectrum. While there are many reasons for this, the two main reasons are lack of literacy and lack of development. In the rural areas, there are not many educational institutes in proportion to the population. Even among people who can write and read reasonably well, there is little awareness about the benefits of the formal financial system.
The next issue which is more complex to understand is the lack of socio-economic development. Economic and social development is how society's economic well-being and quality of life are achieved. By implementing socio-economic welfare plans, factors like literacy rates, employment, and infrastructure are greatly improved. Infrastructure forms the foundation on which economic growth and quality of life can be stimulated and improved.
The above two factors are the main inhibitors that are stopping the overall development of the rural and semi-rural locations of our country. Keeping this in mind, the government has initiated many schemes to encourage growth and development. One of the most promising mechanisms is the micro ATM API.
What is a Micro ATM?
This is where a micro ATM comes into the picture. Micro ATMs are basically card swipe machines through which banks can remotely connect with their core banking system. This device can also come with a fingerprint scanner attached to it. In other words, micro ATMs are the handheld point of sale (POS) terminals that are used to disburse cash in remote regions where bank branches cannot reach.
Micro ATMs are best used for carrying out cash transactions in situations where the bigger and traditional ATMs are running dry. While you need a micro ATM API, micro ATMs are generally used for their card swiping facility which aids in making transactions. After the transaction is complete, the individual will receive a confirmation from their bank through SMS about the transaction.
Why is the Micro ATM Payment System Better than a Traditional ATM?
In many situations, the micro ATM payment system can be a better and more useful alternative to the traditional ATMs. They help ease the monetary operations conducted by thousands of people across the nation. The traditional ATM system has failed and caused many people to suffer from a severe cash crunch in the past few years.
This has led to the search for solutions that can specifically cater to the needs of the rural population of India. RBP Finivis's Micro ATM SDK aims to bridge this vast gap with its advanced fintech technology. Our micro ATM API enables users to access their bank accounts to perform important financial transactions. All you need is your debit card and you can buy or sell goods instantly and painlessly.
What are the Features of a Micro ATM?
Micro ATMs are portable devices that can be carried and handled very easily. Compared to maintaining and running traditional ATMs, micro ATMs are much more cost-efficient and low-cost options for enabling safe transactions. Each transaction is authenticated by biometrics, so there is no need to worry about safety and security. The best part about a micro ATM API is that a transaction can take place with just a debit card.
The salient features of a micro ATM reduce the hassles the rural public faces when making purchases. Since it is a point of sale (POS) station, it also acts as an on-spot ATM where people can access their bank account whenever they need it. There is no loading and unloading of cash, reducing the maintenance costs drastically. The best part is that micro ATMs can be carried easily to faraway distances. So, there is no need for people to travel large distances to access their funds.
How Does a Micro ATM Help Your Business?
There has been a visible boom in the usage of digital payment systems. Incredibly, the number of transactions conducted through micro ATMs in rural India touched around 33.5 million in 2019. This just further proves that micro ATMs are the future of transactions, especially in rural locations of India. You can attract more customers to your business by adding a micro ATM API as one of your POS terminals.
Since micro ATMs are small devices, you can easily contact a micro ATM SDK provider to integrate them into your business. Micro ATMs also work to empower local salesmen and local store owners with these powerful devices. With the growth in digital payments, you can easily future-proof your business by contacting a reliable micro ATM SDK provider like RBP Finivis.
How do micro ATMs solve the issues that rural India is undergoing?
The availability of micro ATM SDK is a major game-changer for businesses operating in semi-rural and rural regions of the country. While running a business, owners would want to attract customers who can then buy many of their products. Unfortunately, many companies are not able to grow their customer base solely because their target customers do not have access to their disposable income.
Moreover, they can do very little about it because the cause is that there are not enough banking facilities in the nearby vicinity. Disposable income is basically the leftover money people have after they pay their taxes and expenses. It is using this leftover money that people use to buy what they wish. Over the past few decades, the disposable income of people has been rising.
As a result, logic dictates that consumers should be able to increase their purchases. However, that has not been happening in areas with bad infrastructure. People often avoid spending their disposable income because they have to travel large distances to reach the nearest ATM or bank branch to get some cash. This has been stifling the rural market for years. Now, with micro ATMs, people can comfortably make transactions without worrying about having less cash.
What are the Benefits of Using a Micro ATM API?
With a micro ATM API, you are effectively empowering your customers to have direct access to their bank account. This, in turn, will attract customers to your company as they have the ability to make payments immediately. You will also lower the number of bad credit accounts you have with your customers because they face a cash crunch. In fact, you can altogether reduce and remove credit payments if you use a micro ATM API in your company.
You will need to contact a micro ATM SDK provider who will help you in integrating it into your business pipeline. RBP Finivis is a revolutionary fintech company with years of experience working in the industry of digital finance and banking systems. Over the years, our company has helped ease the financial problems of many Indians by creating innovative fintech solutions. RBP Finivis has been working towards reducing the banking gap for people in rural India. We aim to empower and encourage people to make pain-free financial decisions through our pioneering products.
