Date:16/09/2005 URL: http://www.thehindubusinessline.com/2005/09/16/stories/2005091602200600.htm

Back ATM transaction fees for NFS to be halved

Our Bureau

Mumbai , Sept. 15

THE Institute for Development and Research in Banking Technology (IDRBT) is planning to decrease ATM transaction charges for the National Financial Switch (NFS) from October 1.

At present, the transaction charges are Rs 20, out of which, Rs 18 goes to the bank and Rs 2 goes to the institute. Now, it will be reduced to Rs 9; Rs 8 for the bank and Re 1 for IDRBT, said Mr R. Gandhi, Director of the institute. He was speaking at the sidelines of a seminar on cyber security for financial services, organised by the Confederation of Indian Industry.

The NFS, which is a shared ATM network, now has 16 banks and 5,000 ATMs. Around 12,000 transactions are carried out daily.

About the security of card payments, Mr Gandhi said that IDRBT and RBI were working on it. The institute is also working with IIT-Mumbai and an industry consortium on a multi-application smart card, he added.

Speaking to presspersons, Ms Usha Thorat, Executive Director, said every bank was gearing towards implementing Basel II norms.

The norms relating to operational risk were difficult as it was elusive and the problems would have to be visualised, she said.