ATM customers will now get free inter-bank connectivity services

ATM (automated teller machines) customers will now get a relief, with the inter-bank connectivity services being made free. The Institute for Development and Research in Banking Technology (IDRBT) — provider of the National Financial Switch (NFS) — on Wednesday said it has waived off the switching fee to promote ATM accessibility in the country.

Currently, a customer is charged Rs 2 per transaction for using the facility. Customers, using nearly 16,891 ATMs of 27 private and public lenders in the country, are expected to get a free-access to the inter-bank connectivity service of these ATMs.

The withdrawal of the service charge is expected to promote ATM accessibility for customers across the country. Besides, it will help banks reduce costs as they can route their inter-bank ATM transactions through NFS, IDRBT said in a statement.

NFS is the largest single ATM network in the country, covering 27 banks including ICICI Bank, Bank of Baroda, Canara Bank, Corporation Bank and Punjab National Bank, among others. NFS enables customer to use any ATM of member banks for services like cash withdrawal and balance enquiry.

IDRBT, promoted by the Reserve Bank of India, had launched the NFS in August 2004, connecting leading banks in the country. The switch enables integration of all ATMs of member banks by coordinating between the different banks’

Courtesy:indianexpress.com
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