STRATEGIC PARTNERS
August 6, 2002
KARACHI, Pakistan -- The State Bank of Pakistan (SBP) has asked all banks to join or come to an agreement with the ATM switch networks of Muslim Commercial Bank (MCB) and ABN Amro if they are not currently connected to either of the two, according to a report in Dawn, an English-language newspaper.
A circular issued by the SBP says that the purpose for asking the banks to get connected through either of the two ATM switch networks is to bring efficiency in the payment systems.
The SBP has asked the banks that are not currently part of either of the two networks to contact MCB or ABN Amro bank and also provide a summary of a connection plan to the SBP by Oct. 31. The deadline for connection to at least one of the two switches is June 30, 2003, according to the SBP circular.
The two ATM switch networks are currently in the process of being connected to each other, which will allow their mutual customers and existing member banks to gain access to more than 250 ATMs across Pakistan.
The SBP circular advised that banks could outsource card production services to one of the two switches or to a third party to reduce the start-up cost of joining the switches and managing the issuance of cards.
