ATM industry seeks lower GST rate, stimulus to address COVID-19 challenges

NEW DELHI: The ATM industry has pitched for a stimulus package deal together with a number of relaxations, together with decreasing of the GST rate, saying the present lockdown due to the coronavirus an infection has hit transactions and posed extreme challenges.
In a letter to Finance Minister Nirmala Sitharaman, the Confederation of ATM Industry (CATMi) talked about that it has been recognised by the federal government as a vital participant to additional the monetary inclusion.

The COVID-19 state of affairs has precipitated a pointy decline within the ATM transactions and has posed extreme enterprise challenges to the ATM industry, the CATMi acknowledged.

“Specifically, in the battle against COVID-19 pandemic, we form a critical link in the distribution of the vital sustenance subsidies (direct benefit transfer) which the Government of India under your leadership has been kindly extending to the financially disadvantaged sections of the society,” CATMi stated within the letter.

It has urged the federal government for a rise in ATM interchange charges, citing suggestions by a committee submitted to the Reserve Bank in December 2019. A financial institution pays ATM interchange expenses for transactions accomplished by its card prospects at different financial institution ATMs.

CATMi stated it’s leaving no stone unturned in its efforts to preserve ATMs up and working, the financial slowdown due to coronavirus pandemic has worsened the monetary points the industry has been going through over the past 5 years due to growing value on operations and compliances.

“The ATM industry today badly needs a stimulus package to keep afloat and augment the banking system in the country and we seek your kind support on the same,” the physique stated.

Seeking for an pressing intervention by the finance ministry, CATMi stated measures akin to bringing down GST charges from the present 18 per cent to 12 per cent, enhance in contract phrases by public sector banks for 2 years to get better prices in addition to compensation to brown label ATMs (BLA) with a mean transaction of final six months post-COVID might assist the industry to an ideal extent as there was an enormous drop in transaction volumes put up the pandemic.

CATMi has additionally requested for incentives to deploy money dispensers/money recyclers for ATM operators to enhance penetration consistent with the RBI scheme of incentives for banks.

It has additionally requested for GST deferral for six months, extension of working capital loans at RBI repo charges for subsequent 9 months, lending up to Rs 10 lakh to white label ATMs (WLA) franchisees from SIDBI at inexpensive charges with out collateral with fundamental KYC.

The ministry must also think about to lengthen curiosity subvention scheme for exporters and embody ATM producers within the scheme (scheme has expired on 31st March 2020) and classification of ATM industry as a precedence sector for lending exercise.

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