News

Indian FIs hope to extend 'on-us only' transactions to off-us ATMs

June 12, 2014

India is exploring the feasibility of allowing ATM users to carry out certain transactions (e.g., deposits, utility payments and digital TV recharge) currently limited to their home bank ATMs at off-us machines.

The National Payments Corporation of India, in collaboration with several banks, is conducting a pilot test of the idea, an article in India’s Business Standard said. If the pilots are successful, the partners hope to obtain permission from the Reserve Bank of India for a wider rollout.

“Several banks have cash deposit facility at ATMs that are not interoperable as yet,” an industry official told the Standard. “So, only the banks’ consumers can use the same. We have sought RBI’s permission to make it independent now.”

The official said that in addition to deposits, bill payments and top-offs, banks are hoping to extend interoperability to functions such as as checkbook requests and card-to-card transfer.

The end game is increasing the profitability of the ATM, Deloitte India senior director Monish Shah told the Standard.

“ATM and such alternate channels are turning out to be the preferred channels to reach the masses … inter-operable features will be an advantage for the banks.”