MUMBAI, India -- More state-run banks are moving to enter the world of the shared online ATM network, with Bank of Maharashtra (BoM), Dena Bank, Oriental Bank of Commerce (OBC), Punjab National Bank (PNB) and Union Bank of India agreeing to open access to their machines.
According to a report in the Financial Times, four state-owned banks -- Bank of India (BoI), Indian Bank, Syndicate Bank and United Bank of India -- on April 9 signed a memorandum of understanding to share their respective ATM networks. Although Punjab National Bank was expected to sign the agreement with the four banks on April 9, its board had not yet issued approval. That approval is forthcoming, however, according to the Times.
(See related story State Bank of India, four other banks to link ATMs)
"Talks are currently on with BoM, Dena Bank, OBC and Union Bank," BoI general manager D Krishnamurthy told the Times. "We are expecting good responses from others also."
BoI is the settlement bank for the shared network.
Dena Bank chairman and managing director AG Joshi said the bank was evaluating the option to join the network. "Dena Bank is also negotiating with other state-owned and private-sector banks to share the ATM networks on mutual basis," he said.
BoM director and chairman of the bank's IT committee Anand Pandit told the Times, "We will consider joining the network at our next board meeting. At the same time, we would also like to go for increasing our own ATM network from 40 to 300 in next 5 to 6 months."
Sharing of respective ATM networks has become more important, according to the Times, because the Indian Banks' Association (IBA) is contemplating terminating its Swadhan Network at the end of 2003.
(See related story India's Swadhan network to end ATM sharing in '04)
In a recent communique to all Swadhan member banks, IBA said that it might terminate the network and asked member banks to make their own respective arrangements for ATM sharing. For the time being, the IBA managing committee has decided to extend its interim arrangement to run the network up to Dec. 31, 2003.
