The Central Bank of the Argentine Republic (BCRA) today authorized the installation of ATMs by non-banking entities. In this way, the current network of almost 20,000 ATMs belonging to financial institutions will be able to be extended with more devices that will be owned by supermarkets, service stations or any other commercial entity, which will even be able to recharge them with the banknotes of its own collection.
Today, Argentina has a lower penetration of ATMs than neighboring countries. In fact, 20% of the country’s towns do not have any ATMs, forcing their inhabitants to move to obtain cash. Therefore, in many areas of the country, the lack of ATMs stimulates the improper use of cash, as in the case of those who withdraw all their income in a single withdrawal instead of doing it gradually, as they must assume expenses. This situation leads to moving larger amounts of cash unnecessarily, which threatens financial inclusion and causes risks in terms of people’s physical safety.
To correct these problems, the BCRA authorized the installation of ATMs by non-financial entities. Charges may be charged for its use, while the regulations provide that the non-bank ATM must accurately inform the customer of the costs prior to the operation, to allow him to desist from it if he wishes. In addition, the screen must display a legend that says “This operation in a financial institution could have no cost.”
The decision adopted today by the Board of Directors of the BCRA does not modify in any way the current regime for the network of bank ATMs or the provisions for their use by customers.
Through this initiative, the BCRA seeks to continue consolidating the development of the financial system, one of the pillars of its management, and to extend the offer of financial services to communities that do not currently have them.
