Union Bank of India, Canara Bank, Andhra Bank, Saraswat Co-operative Bank and YES Bank have come together to allow inter-bank fund transfer via debit cards.
Initially, the amount allowed to be transferred is a maximum Rs 5,000 per day and Rs 25,000 per month.
Aspy Engineer, President & Country Head-ATM Management & Currency Chest at YES Bank, confirmed that the bank has been running this facility for its customer for a while and the response so far has been encouraging.
“This project has been launched on a pan India basis. We are getting good response and good footfalls. Currently we are not charging the customer for this service,” said a ank official involved in the process.
Bankers believe more people are likely to adopt this medium for fund transfer though they have still not started advertising this aggressively.
“We are waiting for a bank with a significant ATM network like SBI to join hands for card to card transfer before we start advertising it aggressively,” said an official from one of the banks that currently allows this facility.
Banks have been looking at reducing the number of visits by consumers to branches and therefore have upped the number of services available via ATMs. For instance a banker explains that if a customer visits a bank branch then the cost incurred per transaction is Rs 40 which can drop to Rs 10-12 if done from an ATM network.
However, fund transfer is allowed even via internet channels where the cost for the bank comes down even further. But the sender needs to add the receiver as a beneficiary and this process takes up to 24 hours unlike a card to card transfer which can be done instantly.