MUMBAI, India - India Switch Company (ISC) has launched Bancs, a national EFT network for debit, credit and related services.
Bancs -- banks' ATM network and customer services -- currently consists of 12 member banks, with eight more slated to join the new network soon. According to a report in The Telegraph, it provides access to 2.4 million debit and credit cardholders.
The network currently includes 2,000 ATMs. The number will rise to 2,800 machines with the addition of the other banks.
Bancs has been processing close to one million transactions per month since its pilot operations, which began in January, said Harish Murthy, chairman of ISC. Transactions are expected to increase by 50 percent in the next few months, he said.
The consortium will support the ATMs of member banks that include Bank of Maharashtra, Centurion Bank, UTI Bank, Central Bank of India, Punjab & Singh Bank and IDBI Bank.
Bank of India (BoI) will be the network's settlement bank.
M. Balachandran, executive director of Bank of India, said the banks will have to pay 25 rupees per transaction (U.S. .55 cents)
According to a report in the Business Standard, Bancs has initiated talks with CashTree, a recently formed shared ATM network of six public sector banks with a combined 700 ATMs, in hopes of offering reciprocal ATM access.
"Talks between the two networks will mainly focus on how to bridge the gap between the transaction charges," said Mani Mammallan, ISC's chief operating officer. The CashTree network collects 10 rupees (U.S. .22 cents) per ATM//debit transaction, compared to 25 rupees for Bancs.
CashTree expects the number of ATM in the network to grow from 700 to 2,000 next month. Members of CashTree network are: Bank of India, Indian Bank, Union Bank of India, United Bank of India, Syndicate Bank and Dena Bank, according to the Business Standard.
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