HYDERABAD, India -- Five public sector banks -- Syndicate Bank, Bank of India, Indian Bank, United Bank of India and Union Bank of India -- have created a shared ATM network called CashTree.
When the network goes live on Aug. 1, customers of any of the five banks will have access to the ATMs of other member banks. This is the first of its kind among the PSU banks in India to share their resources, according to a report in the Times of India.
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The agreement will rename ATMs as network teller machines or NTMs.
The banks have a combined 500 ATMs. However, the number is slated to increase to 1,000 by year's end when other banks like Dena Bank and Bank of Maharashtra are expected to join the network, according to the Times.
"The network marks a major step for these banks to move from proprietary to shared ATM systems. The shared network would facilitate optimum use of the banks' resources, the infrastructure and rationalize deployment of ATMs," Syndicate Bank said in a statement.
All the banks in the group have decided to collect a transaction cost of 10 rupees (21 cents U.S.)
About 2 million customers of these banks across the country would benefit in the network's first phase, according to the Times.
