If what commercial banks have claimed is anything to go by, the number of ATM (Automatic Teller Machine) card users has grown by 200 percent in Nepal this year as compared to the previous year. There may be few exaggerations, but the truth is that the attraction towards ATM cards – which have effectively shortened the queues in bank lobbies, especially for cash withdrawal – is quite overwhelming.

Banks claim the number of ATM card users has soared to 75 thousand this year from 25 thousand last year. “With these cards, you can use the card to draw and deposit money anytime you want. The attraction of customers is very encouraging,” says Shambhu Thapa, ATM in-charge of Nabil Bank.

Nabil has distributed nearly 15 thousand cash cards including debit cards called Visa Electron, which can be used for shopping in select stores. Nabil has 13 ATM counters including four outside Katmandu. According to Thapa, Nabil issues 35 ATM/debit cards on a daily average and 90 percent of customers who opened accounts after the launching of debit cards last year have obtained the cards.

At present, the average cash withdrawal from the ATM counters in Kathmandu and outside is estimated at Rs.10 million. Though deposit facility is available through ATM cards, most are wary of deporting cash from ATM counters.

While no government bank has introduced ATM service yet, several commercial banks have already expanded ATM services in Pokhara, Biratnagar, Dharan and Butwal. Ten commercial banks out of 18 have introduced the ATM services.

Including Nabil, Chartered Bank, Nepal Investment Bank, Everest Bank, Himalayan Bank, Bank of Kathmandu, Nepal Bangladesh Bank, Nepal Development Bank, Machhapuchhre Bank and Laxmi Bank have introduced the ATM services. Standard Chartered, Himalayan, Investment Bank and Nabil Bank have claimed to have issued around 15 thousand ATM and debit cards each.

Considering the groundswell of ATM users, two other commercial banks, Kumari Bank and Nepal Industrial and Commercial Bank are set to set up ATM counters soon.