Guidelines on issue of ATM-cum-debit cards by Banks not Having ATM’s

Guide­lines on issue of ATM-cum-deb­it cards

Please refer to our cir­cu­lar UBD(PCB) Cir No.6/09.18.300/2007–08 dat­ed July 13, 2007 issued to UCBs on the cap­tioned sub­ject and cir­cu­lar DCBR.CO. RCB.No.BC.29/19.51.008/2014–15 dat­ed April 16, 2015 issued to StCBs on instal­la­tion of offsite/ mobile ATMs.

2. We have been receiv­ing rep­re­sen­ta­tions from banks not hav­ing their own ATMs seek­ing per­mis­sion to issue ATM-cum-deb­it cards to their cus­tomers in tie-up with banks hav­ing their own ATM net­work. The mat­ter has been exam­ined keep­ing in view the require­ment to become a direct mem­ber or a sub-mem­ber of the Nation­al Finan­cial Switch (NFS) for car­ry­ing out such trans­ac­tions. Banks are required to ful­fil the fol­low­ing cri­te­ria for becom­ing a sub-mem­ber of NFS network –

  1. Core Bank­ing Solu­tion (CBS) ful­ly implemented.
  2. Licence for con­duct­ing bank­ing business.
  3. Intro­duc­tion from spon­sor bank (a bank hav­ing ATM net­work connectivity).
  4. Con­nec­tiv­i­ty with Nation­al Pay­ment Cor­po­ra­tion of India (NPCI).

3. As a pre­cur­sor to mov­ing towards a less-cash econ­o­my, it is nec­es­sary to incul­cate the habit of using elec­tron­ic pay­ment chan­nels among bank cus­tomers. With this in view, it has been decid­ed to per­mit co-oper­a­tive banks which are CBS enabled, to issue ATM cards/ ATM-cum-deb­it cards in tie-up with a spon­sor bank.

4. Such banks, being sub-mem­bers of Nation­al Finan­cial Switch (NFS), are required to ful­fil the risk man­age­ment require­ments pre­scribed by the spon­sor bank and meet expens­es devolv­ing on them under the agree­ment with the spon­sor bank. Banks should set­up their own arrange­ment for issu­ing cards, autho­riza­tion of cards and cus­tomer support/ redres­sal mech­a­nism and ensure to pro­vide unin­ter­rupt­ed ser­vices to their customers.

Yours faith­ful­ly,

(Ree­ny Ajith)
Gen­er­al Manager

RBI/2015–2016/130
DCBR.BPD. (PCB/RCB).Cir.No. 1/16.20.000/2015–16

July 16, 2015

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