[sbinews] Hello BANCS, Goodbye Swadhan

  • From: rajendra.pai@xxxxxxxxx
  • To: sbinews@xxxxxxxxxxxxx
  • Date: Sat, 06 Dec 2003 06:27:38 +0600 (IST)

Hello BANCS, Goodbye Swadhan  
MUMBAI, DEC 5:  Come December 31, 2003 and the Indian Banks? Association?s 
(IBA) Swadhan network will make an exit from the banks? ATM (automated teller 
machine) loop. But a chunk of Swadhan member banks still feel the need to 
continue sharing their ATM networks to provide customers a better deal. And 
this need looms large even with four ATM loops existing. 

So, ?BANCS? is all set to make an entry in January 2004. To start with, 
customers of member banks can access around 2,500 ATM machines. Thus far, 15 
banks which were members of Swadhan have evinced interest to join the new one. 
While, the Reserve Bank of India (RBI) has already approved Bank of India (BoI) 
as the settlement bank for the network, the nitty gritty of the plan is 
currently being worked out. This is the first of its kind where cooperative 
banks are also part of the project. 

Though the set up of BANCS will almost be the same as Swadhan?s, IBA will have 
no role to play in this. This will be run and managed by a committee, sources 
close to the development said, adding that the India Switch Company will be the 
service provider. 

The 15 banks which have shown willingness to join the new network include Bank 
of Bahrain & Kuwait, HSBC, Bharat Overseas Bank, Catholic Syrian Bank, 
Centurion Bank, Development Credit Bank, IDBI Bank, UTI Bank, Bank of 
Maharashtra, Corporation Bank, Air Corporation Employees? Cooperative Bank, 
Greater Cooperative Bank, Ratnakar Cooperative Bank and BoI. 

Under this network, the transaction cost will be Rs 25 (interchange fee: Rs 20 
and transaction fee: Rs 5). Here, the cost will be charged to the issuer bank. 
In other shared networks, the transaction cost is charged to the acquirer bank. 
A customer will also have to shell out Rs 25 per transaction. 

On the difference between IBA?s Swadhan network and this new venture, sources 
said that this project would be driven by business interests of these banks ? a 
move away from Swadhan, where banks share their networks without any business 
proposition. Transaction costs will be lower and all the ATMs will be online 
under this network. 

In a changing banking environment wherein ?customer focus? is the buzzword, 
every bank would like to offer better services to their respective customers. 
At this point in time there are four ATM shared network already in place ? 
Cashtree, CashNet, MITR and Cash Online.

Email From "rajendra.pai@xxxxxxxxx" was security checked by 3.90  version of 
On: mail_store at: 06:27:38, 06-Dec-2003 Saturday
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