Here is why the Indian ATMs have become dysfunctional
After the move of Centre to demonetise the high denomination notes, huge queues were seen at the ATMs in various cities of India to withdraw new currency notes or get them exchanged with the old ones. In the midst of this chaos it has been revealed that the reason of
New Delhi: After the move of Centre to demonetise the high denomination notes, huge queues were seen at the ATMs in various cities of India to withdraw new currency notes or get them exchanged with the old ones. In the midst of this chaos it has been revealed that the reason of deficiency of operating ATMs in the country has been caused due to cancellation of the licences of Indian company looking after the ATM facilities by an American cooperation.
- An American company CI World Wide had issued a license to a Chennai based private company Financial Software and Systems (FSS) who was looking after about 40 thousand ATMs in the country.
- These 40 thousand ATMs across the nation have stopped working after this license has been cancelled by the America based company. There has been no flow of currency notes into these machines after this step.
- The case was investigated after the Finance Ministry was made aware about these money withdrawal machines which became dysfunctional since demonetisation.
Reason for cancellation of the license:
- The company based in America has its headquarters in Florida and a branch in Mumbai city of India.
- The General Manager of the Mumbai based branch of the company stated that IC World Wide has ended its agreement with FSS on November 1 last.
- “ICWW had warned banks about its decision and has asked them to end their deal with the FSS,” he stated.
- According to the GM, “FSS had violated some policy of the agreement due to which ICWW had sent it the notice of ending their deal in August last.”
It may be mentioned that PM Modi had announced that people can withdraw their money upto Rs 2000 till November 18 and Rs 4000 afterwards through the ATMs but these machines becoming dysfunctional has created unrest in the residents.