When the public is holding cash amounting to a whopping Rs 11,64,450 crore, shouldn’t banks try and convert a part of this money into deposits? State Bank of India Chairman, Pratip Chaudhuri, distinctly sees such a possibility at a time when the banking system is facing liquidity tightness. In order to tap currency in the hands of the public, India’s largest bank is installing cash deposit machines (CDMs) at marketplaces across the country.
Traders, shopkeepers and vegetable vendors can deposit cash into these CDMs anytime of the day (24x7) and 365 days of the year just by swiping their SBI ATM-cum-debit card. The money gets instantly credited to their account and they get a receipt for their transaction. Chaudhuri said, “Today bank branches close at 4 pm or 5 pm, whereas most of India’s retail trade happens in the evening. No matter how much you promote cards (credit and debit), 70-80 per cent of the trade is in cash, especially at the street-level shops. So, banks need to have the ability to set up cash deposit machines.”
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