BNP Paribas has signed a memorandum of understanding with UTI Bank for the sharing of ATMs. The MoU is aimed at offering the customers of each bank the facility of using the combined network of ATMs of both the banks.
The ATM sharing arrangement is expected to come into effect by end-November, after which customers of both banks can access all the ATMs. The customers of both the banks will, however, not be charged for using the ATMs. R Venkatesh, head-direct banking, BNP Paribas, said: "Customers will not have to pay for using the ATM networks. BNP Paribas will be paying UTI Bank and vice-versa for the network used by the customers."
The ATM sharing would help both the banks in increasing its fee-based income. UTI Bank has a tie-up with MasterCard and is in the process of tying up with Visa too, while BNP Paribas has tied up with both Visa and MasterCard. Banks get an interchange fees when credit card customers of other banks use their ATM network.
"The bank is keen to ensure a substantially wider utilisation of its ATM network after having invested in building up the infrastructure. This is the first of several such agreements which the bank is expected to forge," UTI Bank's chairman and managing director P J Nayak, added.
UTI Bank has around 400 ATMs across the country and plans to increase the number to 500 by the year-end. UTI Bank has been increasing its retail focus and will launch its debit card along with Visa Electron in a short time.
BNP Paribas is open to more tie-ups with other banks in the future to share the ATM network. The bank will also be going in for its full launch of retail products in the near future, said Venkatesh.
BNP Paribas, which has nine branches and around 20 ATMs across the country, has been looking at entering the retail market for some time now. The bank has been concentrating on corporate banking and has recently soft-launched a host of retail products, such as auto loans personal loans, depository products etc.
