The global leader in broadband satellite networks and services, Hughes Communications India Limited (HCIL), a subsidiary of Hughes Network Systems, LLC (HUGHES), announced that it has connected over 12,000 off-site ATMs and rural bank branches with a secure broadband satellite network in 2014.
By eight different banks new contracts were awarded to company which were valued at INR 300 million. It includes bank like Punjab National Bank, HDFC Bank, Oriental Bank of Commerce, Bank of Baroda, IDBI Bank, Dena Bank, Punjab & Sind Bank, and Odissa Gramya Bank.
"One of the biggest bottlenecks facing development in India is the lack of financial inclusion for the masses in under-served areas. As the leading provider of VSAT connectivity in India, Hughes has been at the forefront in helping fulfill Prime Minister Modi's mission to put development on the fast track by ensuring that almost every Indian across 600,000 villages has access to banking services. It is a proud moment for us as we add another 12,000 off-site ATMs and rural bank branches to India's growing banking networ k,"said Shivaji Chatterjee, head of Enterprise Business at HCIL.
As per the RBI data outlining global financial inclusion indicators for 2011, India has one of the lowest ATM densities in the world with only 25.4 ATM machines for every 1,000 sq. km. This translates into 8.9 ATMs for every 1 lakh in population. In contrast, bank customers in China have access to 2,975 machines in the same geographical expanse, with 49.6 ATMs per 1 lakh in population.
To date, the total number of ATMs and bank branches connected by Hughes satellite networking is approximately 50,000. The Ministry of Finance and a consortium of public sector banks in India entered into a contract with multiple ATM Managed Service Providers for installing and managing a total of 63,000 offsite and onsite ATMs across urban and rural India, by far one of the largest initiatives adopted by the Indian Government to widen the reach of banking facilities. ATM penetration in India is expected to continue on the path of high growth and reach an estimated 200,000 ATMs by 2016.