Hughes Communications India, a subsidiary of Hughes Network Systems--provider of broadband satellite networks and services-- today announced that it has been contracted to connect 27,000 offsite ATMs with a secure broadband satellite network over the next two years and provide managed network services for various public sector banks.
The contracts with a total value of Rs 200 crore (approx $36 million) over an eight year period, was awarded by eight managed service providers (MSPs), namely, Accura Infotech, AGS Transact Technologies, EPS, FIS Global, Financial Software and Systems, MphasiS, NCR, and Tata Communications Banking Infra Solutions.
The Hughes win is part of one of the largest outsourcing deals in the financial sector, under which the Ministry of Finance and a consortium of all the public sector banks of India have contracted with nine different MSPs to install and manage a total of 63,000 off-site and on-site ATMs across urban and rural India.
The MSPs were chosen through a series of reverse auctions for sixteen different circles, conducted by six lead banks, namely, State Bank of India, Bank of India, Punjab National Bank, Bank Of Baroda, Union Bank of India, and Canara Bank. India currently has approximately 100,000 ATMs and this initiative is expected to increase the ATM density by over 60 per cent, thus helping meet the goals of Financial Inclusion and delivery of e-Government services to citizens directly.
“The Indian ATM industry is growing at an exponential rate, and this project will bring much-needed banking services to consumers and businesses across the country. Upon completion it will bring our total managed sites to over 60,000, providing secure satellite connectivity with uptimes of greater than 99.9 per cent and enabling 24x7 banking services,” said Partho Banerjee, president and managing director at HCIL.
