Public sector lenders are being asked by the government to work on the concept of joint sourcing of ATMs in order to carry forward the aim of attaining total financial inclusion in the country. The ideal of joint sourcing of ATMs at state/district level has been placed by the finance ministry.

Through joint sourcing, economies of scale can be attained thereby bringing significant reduction on costs.

Growth of ATMs is still low in rural areas and lower volume of transactions makes the cost of setting an ATM there go even higher.

"It is likely that according to the joint sourcing procedure being worked out by the Indian Banks' Association, procurement of ATMs would be done either at the State or district level. This will reduce the cost of procurement for banks as volumes will higher," said a senior public sector bank official.