One of the technological innovations that is going to replace the work of ATMs is Cash Recycler Machine. The CRM is a self-service terminal that allows a customer to make both cash deposit and withdrawals.
Working of the CRM
In a cash recycler or CRM, banknotes are placed into a feeder first when a person is depositing cash. Then, it is passed through a bill identifier to determine the denomination (Rs 2000, Rs 500 or Rs 100 notes) and to check the validity of the banknotes. Validity means to check whether the note is counterfeit currency. For this, CRMs in India have RBI supported note identification protocols and mechanisms. The recycled notes are then stored into separate cassettes in the machines automatically for dispensing to the customers. Of the two functions of the machine – deposit and cash withdrawal, it is for the deposit activity that the CRM uses tedious effort. The CRM thus do an exact recycling process - collecting cash from the depositors and giving it to those who withdraws money.
Validation and issue of receipts
Valid transactions are immediately credited or debited in real time (immediately) and customers will get an acknowledgment slip confirming the transaction. A Debit Card holder can use the CRM for withdrawal as in the case of ATM. For depositing the cash, customers should have either his/her debit card or beneficiary’s account number. Once the transaction is completed, a receipt will show the updated account balance. Following are the major features of the CRMs established with Indian banks:
- Cash recyclers allows both cash withdrawal and deposit.
- To check the genuiness of notes, the CRMs are supported with Bill Validation
- Accurate Counterfeit recognition and retention (as per RBI parameters) of the currency notes are made by CRMs and notes are recorded on behalf of the account of the depositing customers.
- Cash deposits are in line with the current KYC norms. Deposit with debit card up to Rs.2 lakh per day in the case of PAN submitted accounts and Rs.49,999/- where PAN is not registered with the account.
- Card less transaction (by feeding account number) up to Rs. 20,000/- per day is also allowed.
- In case the customer deposits above the permissible limit, then the CRM rejects the transaction and notes are given back to the customer
An advantage of CRM is that it performs the dual function unlike in the case of an ATM. Hence, the future of financial technology on real time banking lies with CRM. As a machine doing the activity of accepting cash and dispensing them, the CRM performs holistic cash management. Hence the machine automates manual cash management, relieving the work of bank staffs. Banks including SBI and Bank of Baroda have installed CRMs in metros.