Ration shops to double as micro-ATMs in Tamil Nadu

CHENNAI: Tamil Nadu Cooperation department is planning to modify fair price shops to also function as micro-ATMs that provide cash disbursement services. The proposal aims to offer last-mile banking access to underserved communities that face challenges in accessing ATMs and bank branches.

To achieve this, the state plans to introduce Aadhaar-based digital payment services at ration shops in rural areas, hill stations, and densely populated regions lacking banking facilities.

A digital device with biometric authentication, capable of providing core banking services, would be installed at ration shops and a banking correspondent would be deployed.

Eight years ago, the centre mooted the idea, but it did not materialise due to challenges in linking electronic Point-of-Sale machines to core banking solutions platforms.