Half of India's ATMs may close down by Mar '19: CATMi

Agencies
November 21, 2018

Mumbai, Nov 21: Changes in regulatory landscape are making it unviable to operate ATMs, and may lead to the closure of half of the 2.38 lakh machines in the country by March 2019, the Confederation of ATM Industry (CATMi) warned on Wednesday.

Closure of the ATMs will impact thousands of jobs and also the financial inclusion efforts of the government, the industry body said in a statement.

"Service providers may be forced to close down almost 1.13 lakh ATMs across the country by March 2019. These numbers include approximately one lakh off-site ATMs and a little over 15,000 white label ATMs," it said.

The industry has reached a "tipping point", the body added.

A majority of the ATMs which can be shut down will be in the non-urban areas, it said, underlining that this can impact the financial inclusion efforts as beneficiaries use the machines to withdraw government subsidies.

The industry body said that recent regulatory changes, including those on hardware and software upgrades, coupled with mandates on cash management standards and the cassette swap method of loading cash, will make ATM operations unviable, resulting in the closure.

The new cash logistics and cassette swap method will alone result in costs of Rs 3,000 crore for the industry, it estimated.

It added that the ATM industry, including managed service providers, brown-label ATM deployers and white label ATM operators (WLAO), is still reeling under the shock of demonetisation.

"The situation has further deteriorated now due to the additional compliance requirements that call for a huge cost outlay. The service providers do not have the financial means to meet such massive costs and may be forced to shut down these ATMs," it said.

The only way to salvage the situation for the industry, according to the body, is if banks "step in to bear the load of the additional cost of compliances".

"Unless ATM deployers are compensated by banks for making these investments, there is likely to be a scenario where contracts are surrendered, leading to the large-scale closure of ATMs," it said.

Revenues for providing ATMs as a service are not growing at all due to very low ATM interchange charges and ever-increasing costs, it said, adding that such changes in the landscape were not anticipated while signing contracts with the banks.

The WLAOs have accumulated losses and the compliance costs can result in over 15,000 machines run by them shutting down, the industry body added.

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April 23,2024

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Mangaluru, Apr 23: As an outbreak of avian flu has been reported in some districts of neighbouring Kerala, the border areas of Karnataka, including Mangaluru, have been put on high alert, officials of the Karnataka Animal Husbandry department said.

At present, the situation in Kerala is being monitored before any action can be taken, they said.

“Our Kerala counterparts have assured us that the avian flu has been contained within Alappuzha district. However, loading, booking and carrying poultry and poultry products on trains and at railway stations are still under consideration (surveillance), the officials said.

Not only railways but also road transport ferrying chicken loads from Kerala to Mangaluru are under surveillance. Mangaluru, being one of the largest consumers of chicken from Kerala, has halted chicken procurement from Kerala-based suppliers.

Sudhakar Shetty, a market functionary, stated, “The animal husbandry department of Kerala has advised containment of avian flu within a few districts in Kerala. We are closely monitoring the situation.” Despite this, the market has not experienced significant fluctuations in supply yet, as local stocks have been adequate to meet the demand for the next few days.

Demand for chicken could fall for a few days due to a series of temple festivals in coastal areas, where many consumers refrain from consuming meat-based meals until Saturday. Nevertheless, Sunday could witness a change, as consumers may desire hot chicken curry for their Sunday meals, according to the local people.

As officials in the animal husbandry department in Dakshina Kannada have raised awareness in the market about avian flu in the neighbouring state, the question arises whether prices will fall if demand decreases.

“We do not want to contribute to the hysteria surrounding avian flu until our local stock falls below the level of demand,” said Aston D’Souza, a farm owner.

Dakshina Kannada also serves as a good market for suppliers from Shivamogga, Hassan, and Chikkamagaluru.

“In case supplies dwindle due to an unlikely prolonged shutdown of Kerala supplies, we can always purchase from those districts, albeit at a slightly higher cost than Kerala stock,” Shetty said.

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April 17,2024

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New Delhi: Searches conducted by the Enforcement Directorate (ED) under the anti-money laundering law rose by 86 times while arrests and attachment of assets jumped by around 25 times in the ten years since 2014 compared to the preceding nine-year period, according to official data.

An analysis of the data by PTI for the last ten years, between April 2014 and March 2024, against the nine years from July 2005 to March 2014 presents a picture of the federal agency's "intensified" action under various sections of the Prevention of Money Laundering Act (PMLA).

The PMLA was enacted in 2002 and implemented from July 1, 2005, to check serious crimes of tax evasion, generation of black money and money laundering.

While the opposition parties have alleged that the ED's action during the last decade was part of the BJP-led central government's "oppressive" tactics against its rivals and others, the Union government and the ruling party have asserted that the agency is independent and its investigations were purely based on merit and under the mandate to act against the corrupt.

The ED booked as many as 5,155 PMLA cases during the last ten years as compared to a total of 1,797 complaints or Enforcement Case Information Reports (ECIRs or FIRs) filed during the preceding period (2005-14), a jump of about three times, the data said.

The data shows that the agency also got its first conviction starting the 2014 fiscal and it has, till now, got 63 persons punished under the anti-money laundering law.

The ED conducted 7,264 searches or raids in money laundering cases across the country during the 2014-2024 period as compared to just 84 in the preceding period - a jump of 86 times.

It also arrested a total of 755 people during the last decade and attached assets worth Rs 1,21,618 crore as compared to 29 arrests and Rs 5,086.43 crore worth of attachments respectively during the last compared period, the data stated.

The arrests are 26 times more, while figures related to the attachment of properties are 24 times higher.

The agency issued 1,971 provisional attachment orders for various types of immovable and movable assets during the last decade as compared to 311 such orders taken out in the preceding comparable period.

It got about 84 per cent of the attachment orders confirmed from the Adjudicating Authority of the PMLA during 2014-24 as compared to 68 per cent confirmations from the same authority during the last compared period.

The filing of charge sheets also saw a jump of 12 times in the last decade with 1,281 prosecution complaints filed by it before courts as against 102 during the preceding period.

The data said the ED secured conviction orders in 36 cases from various courts leading to the prosecution of 63 persons and a total of 73 charge sheets were disposed of during the last decade.

No conviction was obtained by the agency nor any charge sheet was disposed of under the anti-money laundering law during the 2005-14 period, according to the statistics.

The agency also got the court's permission to confiscate assets (attached as proceeds of crime under the PMLA) worth Rs 15,710.96 crore and it also restituted properties (including bank funds) of Rs 16,404.19 crore (out of the total amount under confiscation) during the last decade.

As there were no convictions during the preceding nine-year period, no confiscation of assets and resultant restitution could take place, as per the data.

The ED is also empowered to seize cash under the PMLA and the data said the agency froze more than Rs 2,310 crore worth of Indian and foreign currency during the last ten years as compared to a figure of Rs 43 lakh during the preceding period.

The agency also got notified a total of 24 Interpol red notices for apprehension of various accused who left India and hid in foreign shores and sent 43 extradition requests during 2014-24.

No such action was taken by the agency during the preceding period.

Four persons were extradited to India during the last ten-year time period while similar orders were secured against businessmen Vijay Mallya, Nirav Modi and Sanjay Bhandari. The three are based in the UK and the ED is trying to bring them back to the country as all the accused are contesting the orders issued against them.

"These statistics reflect the intensive drive that the ED has undertaken to check money laundering crimes," an agency official said.

The ED investigates financial crimes under two criminal laws -- the Prevention of Money Laundering Act (PMLA) and the Fugitive Economic Offenders Act (FEOA) -- apart from the civil provisions of the Foreign Exchange Management Act (FEMA).

The FEOA was enacted by the Narendra Modi government in 2018 to cripple those who are charged with high-value economic frauds and abscond from the country to evade the law.

The ED, as per the data, filed a total of 19 such applications before the designated special PMLA courts in the country following which 12 persons have been declared fugitive economic offenders.

It also confiscated assets worth Rs 906 crore under the said law by the end of the last fiscal on March 31.

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April 27,2024

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"I always wanted to be in a bar fight," said a US police official after pinning a Black man down on the ground and kneeling on his neck. The man later died at a hospital.

Ohio Police have come under intense scrutiny following the release of body camera footage showing officers pinning a Black man to the ground in a bar, reminiscent of the events that led to George Floyd's death in 2020.

The video, released by the Canton Police Department, captured the moments leading up to the death of Frank Tyson, a 53-year-old man suspected of leaving the scene of a single-car accident on April 18.

In the footage, officers are seen confronting Tyson inside a bar, where an altercation quickly ensues. Despite Tyson's pleas for help and his repeated cries of "I can't breathe," officers wrestle him to the ground and handcuff him, with one officer applying pressure to his back near his neck while saying, "You're fine." 

Tyson continues to plead for relief while lying on the floor. After several minutes, officers notice his lack of responsiveness and proceed to administer CPR. Paramedics arrive on the scene and transport Tyson to a local hospital, where he later dies.

In the body cam footage, one police officer can be heard bragging about how he always wanted to be in a "bar fight" with one of the patrons of the establishment. 

The circumstances surrounding Tyson's death draw chilling parallels to George Floyd's fatal encounter with Minneapolis Police in 2020 which sparked global outrage. 

The officers involved in Tyson's case, identified as Beau Schoenegge and Camden Burch, have been placed on administrative leave pending an investigation by the Ohio Bureau of Criminal Investigation. 

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