Inter-Bank ATM transactions becomes cheaper in India

The National Financial Switch (NFS) set up by the Institute for Development and Research in Banking Technology (IDRBT), has provided the facility of interconnectivity of ATMs for customers to use any ATM for cash withdrawal and for other transactions like balance enquiry etc.

The NFS network now covers 16,891 ATMs and it is the largest single network in the country covering ATMs of 27 banks.The daily average transaction volume of the NFS network is around 75,000.

IDRBT presently charges Rs. 2/- for providing this facility of switching (routing) the transactions of various member banks.

With a view to encouraging all banks to join NFS network for widening the coverage of ATMs and thereby providing easier access to customers as also to promote greater use of ATM as an important payment system infrastructure, the IDRBT has decided to waive off the switching fee of Rs. 2/- with effect from December 3, 2007

This opens up an opportunity for banks to reduce costs by routing inter-bank ATM transactions through NFS. This waiver should promote use of ATM as shared infrastructure of all banks benefiting all customers.

Banknet’s Fourth International Conference on Payment Systems on 16th January, 2008 at Mumbai, India will discuss "Synchronized working of Alternate Channels like ATMs, Internet and Mobile Banking and EMV migration" ... Click for more

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