National Financial Switch - Transaction cost re-introduced.
National Payments Corporation of India, in short NPCI, has started to make its presence felt in the Payments area of our Country.
NPCI has decided to charge Rs1/- for every transaction executed on the NFS ATM network, from 01/01/2010
This was announced by NPCI CEO AP Hota, at the recent Banknet Conference held in Mumbai.
National Financial Switch is the Brand name for the ATM Switching Services being offered by IDRBT.
National Financial Switch was dedicated to the Nation on August 27, 2004, by Dr. Y. V. Reddy, Shri. G. N. Bajpai, and Shri. C. S. Rao, at IDBRT office.
From October 15, 2009, it has taken over on an AS IS WHERE BASIS, operations of National Financial Switch (NFS) from IDRBT.
NPCI had deputed its officials to IDRBT Hyderabad and NPCI has taken over NFS operations from December 14, 2009.
An efficient ATM Switching Service ensures a successful transaction:
For a successful ATM Transaction, the ATM Switching Service, must complete the follwing actions in 30 seconds:-
1. An SBI ATM card holder swipes his card at an ICICI Bank ATM
2. The ATM links to its own core banking network to verify if it is an ICICI card
3. On finding it is an SBI card, it transfers data to the SBI Bank switch
4. The SBI switch connects to its core banking network and processes the transaction
5. After verification, the SBI switch communicates with the ICICI Bank switch
6. Finally, ATM dispenses the cash to the customer
At present 37 Banks are members of the NFS
Sr.No. Bank Name
1 Allahabad Bank
2 Andhra Bank
3 Axis Bank
4 Bank of Baroda
5 Bank of India
6 Bank of Maharashtra
7 Canara Bank
8 Catholic Syrian Bank
9 Central Bank of India
10 City Union Bank
11 Corporation Bank
12 Cosmos Cooperative Bank
13 Dena Bank
14 Development Credit Bank
15 Dhanalakshmi Bank
16 HDFC Bank
17 ICICI Bank
18 IDBI Bank
19 Indian Bank
20 Indian Overseas Bank
21 IndusInd Bank
22 Jammu and Kashmir Bank
23 Karnataka Bank
24 Karur Vysya Bank
25 Lakshmi Vilas Bank
26 Oriental Bank of Commerce
27 Punjab National Bank
28 South Indian Bank
29 Standard Chartered Bank
30 State Bank of India
31 Syndicate Bank
32 Tamilnad Mercantile Bank
33 UCO Bank
34 Union Bank of India
35 United Bank of India
36 Vijaya Bank
37 Yes Bank Limited
The aim is to increase the Membership banks to 78 over a period of time.
Over a period of time, the transaction charges will be reduced as new Banks join the NFS Switch.
Previously, the charges were Rs2/- per transaction until 2007. From December 2007, this NFS transactions were waived, to reduce the ATM transaction costs and also to boost the ATM Transactions.
In the weeks to come, there will be more clarity, as to which Bank has to bear the Rs1/- NFS transaction Cost i.e the Card Issuing Bank or ATM Owned Bank. If it is the ATM Owned Bank, than obviosuly the Re1/- cost will be transferred to the Card Issuing Bank.
