Suryoday Bank to shut down ATMs from Oct 1

Chennai: Suryoday Small Finance Bank on Tuesday informed its customers that it would discontinue operating its ATM network from October 1 due to viability issues. It is now looking at increasing the number of free cash withdrawals for its customers to ensure that they are not impacted by the move.

“We have very less volume of cash transactions. Today nobody walks to an ATM to withdraw cash and with the proliferation of AEPS, UPI and wallets, owning a small network of ATMs was not viable,” said R Baskar Babu co-founder and CEO of Suryoday Small Finance Bank. The Bank, which has just 26 ATMs and 550 branches. Instead the Bank wants to open more micro ATMs. “Nearly 80% of the business is digital and customers have embraced digital banking. So spending money to maintain a small network of ATMs was futile. Therefore we decided to shut our own network and allow use of third party ATMs,” he said.