Onward with ATMs

The inter-connectivity of two ATM switches - MNET of the Muslim Commercial Bank and I-Link of ABN Amro Bank, that the State Bank Governor, Dr Ishrat Husain, formally inaugurated on March 16, will certainly go down as an epoch-making event in the history of modern banking in Pakistan.
For, as the Governor rightly pointed out in his address to the country's top bankers on the occasion, it meant a major breakthrough in universal banking, to the promotion of which he reiterated the central bank was committed.
The credibility of his assertion, unlike of the fond hopes often created by the economic managers, should leave little to doubt either.
This has reference to many and varied innovations in banking services and practices made possible during the short period Ishrat has been at the helm of the country's central bank.
Among other things, the dynamism of his approach to modernisation of banking in the country, with a keen eye on automation, is vividly discernible in the fascinating proliferation of automated teller machines (ATMs), as quickly followed by their integration and now leading to inter-connectivity of the two switches.
The latest development has, as such, made the dream of every holder of ATM card or debit card accessing cash and other facilities of his bank from anywhere in the country.
This, indeed, will be viewed as nothing short of a revolution that Dr Ishrat Husain rightly stated has marked the beginning of plastic money in Pakistan, which would bring banking in the country on-line.
It goes without saying that this could not have been possible, except through imaginative planning and unfailing enforcement of the measures objectively devised towards that end.
For as the Governor recalled in his inaugural speech, it was almost impossible to install a new ATM under the circumstances prevailing in the country when he took over charge of the central bank.
Progress in that direction, as such, called for relaxation in a number of regulations aimed at rapid expansion of ATM facility, besides improvements in and standardisation of payment systems.
A challenging task it really was and the results of the needed efforts thus far achieved have certainly provided a fillip to growth of modern banking in Pakistan in all its forms and manifestations.
Viewed in this perspective, the Governor's dismay over the apparent apathy of the account holders to avail of the ATM facilities is quite understandable, for lack of interest on their part, in this regard, can hamper progress towards development of e-banking in the country for which the stage has been set.
It will, however, be noted that optimum installation of ATMs and their nation-wide connectivity is not an end in itself.
The ultimate task is to integrate all the components of e-banking with facilities available internationally.
And to pave the way for it in a planned manner, the facilities as presently available will need improving from different directions.
For one thing, due note will need be taken of the factors impeding its widening use. For, all said and done, despite expansion of facilities, reluctance of the account holders can still be attributed to a number of factors.
The foremost among these happens to be the prevailing uncertainty of functioning of the machines, on two counts.
The availability of cash as and when needed by the customer needs to be assured so that in actual practice, the ATM when approached may not be found short of cash.
This may be done by feeding the machines with new currency notes, as the system of bundling of notes together does not fit in because of their flawed handling.
This will necessitate use of special paper resisting twists and creases. As for the other irritant, it relates to problem of connectivity, which may hamper the customers' prompt access to their accounts.
To address these problems, it will be necessary to seek co-operation of the PTCL. One hopes that these irritants will be effectively removed with active intercession of the State Bank in the matter.