SBI plans non-banking services through ATMs

By Our Staff Reporter

KOLKATA, JUNE 20. Automated teller machines or ATMs are soon to be opened for a host of other services than banking with any particular bank. To begin with, State Bank of India will launch a pilot project for suburban railway season ticket bookings through ATMs in Mumbai and Kolkata. Speaking to mediapersons here today after formally inaugurating SBI networking services, the bank chairman, Mr. Janki Vallabh, said the pilot project, if the railway authorities were satisfied, would be extended to a full- scale railway booking facility through any SBI ATM. The bank will earn a commission of Rs. 5 on suburban tickets and Rs. 15-25 on long distance tickets.

As per the project proposal, SBI will access the railway database through an intermediary server connected to ATMs through Base24 switch. Both the switch and the intermediary server would be supplied by the Chennai-based Financial Software and Systems (P) Ltd.

According to sources, the bank is also in talks with public sector insurance majors for effecting payment of insurance premiums through ATMs. The project is expected to be finalised in this fiscal.

Meanwhile, ICICI Bank, HDFC Bank and UTI Bank `have shown interest' to bring their combined ATM population under a single network to be shared by SBI. All the four use Base24 switches. Though SBI, already owning 100 networked ATMs and to be expanded to 1,000 by the end of this fiscal, is yet to agree to the proposal, sources believe that the same would be finalised soon enabling customers of any of the banks to use any of the four ATMs.

Though a distinct laggard on the technology front when compared to private and foreign banks, SBI today promised to network 2,000 of its branches before 2003. The journey in that direction began today by networking 260 branches and 100 ATMs spread over seven cities. ``By the end of this fiscal at least 350 branches will be networked'', Mr. Vallabh said. The bank had already issued one million ATM cards to its customers.

Apart from networking, 51 SBI branches will provide Internet banking facilities from July 1 and will be extended to 100 branches by the end of this fiscal.

SBI has earmarked a Rs. 800 crore technology roadmap to change its growing image from a senior citizens bank to a popular bank, the investments in 1999-2000 and 2000-01 being Rs. 80 crores and Rs. 98 crores respectively towards introduction of new age technology. The technology investment will be spearheaded by the recently set up SBI Infotech. The latter will have strategic alliances with key players but equity participation will be on a project-to-project basis.

A target has been set to conform to the U.S. GAAP accounting standards by the next fiscal.

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