Abn Amro, Uti Bank In Pact To Share Atms

ABN Amro Bank and UTI Bank have announced an agreement to share Automated Teller Machines (ATMs) in India.

This agreement is aimed at offering the customers of both banks the facility of using the combined 575-strong ATM network. ABN Amro Bank customers will not be charged for the withdrawals, while UTI Bank customers will be charged Rs 50 per transaction.

ABN Amro Bank EVP and country representative Romesh Sobti said: "The ATM is an additional relationship point. The tie-up will help improve the non-branch delivery. Instead of incurring capital costs, the tie-up will enable us to improve the drive for customer acquisition."

Hemant Kaul, senior vice-president, retail banking, UTI Bank, said: "UTI Bank is keen on increasing wider utilisation of its ATM network for customers. The network is already profitable with a 140-150 transaction per ATM per day."

He added: "The bank is in discussions with half a dozen other banks including foreign, old and new private sector players, as well as some public sector banks in this regard. This will help us acquire additional transactions and increase our fee-based income. Already, around 10 to 12 per cent of the transactions are through third-party transactions."

UTI Bank has tied up with MasterCard and Visa. It has also tied up with BNP Paribas for a three-year period to allow the foreign bank's customers to use its ATMs.

UTI Bank has a network of 526 ATMs, along with 150 branches and extension counters spread across 65 cities and towns. It plans to increase its presence to 170 branches and extension counters and 900 ATMs across 80 centres by the end of the current financial year.

ABN Amro Bank has 51 ATMs and 12 branches in nine cities and plans to increase its ATM network to around 150 in the next 2-3 years.

Banks in order to boost the other income and also to share a part of their costs have been in talks with others to share their ATM network. Other new private sector banks are also in talks with foreign and old private sector banks. Public sector banks such as Corporation Bank is also in talks with other smaller public sector banks to allow their customers to use its ATMs.