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Now, use your debit card for inter-bank fund transfers at ATM centres

If you need to transfer money from your YES Bank account to a customer of Union Bank of India, you can now do that via your debit card by visiting an automated teller machine (ATM).

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.

“For this card-to-card transfer, a customer has to go to the ATM and just punch in the debit card number of the person to whom they wish to transfer money. You just have to type the 16 digit debit card number of that person in the ATM and the amount that you want to transfer. Immediately once he/she confirms ok, his/her account gets debited and the other person’s account linked to the card gets credited. This is an instant fund transfer,” said a senior Union Bank of India official explaining the transfer process. 

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.

Earlier, some banks such as State Bank of India (SBI) have been offering such card to card transfer but this facility was available only if both the receiver and the sender are SBI’s debit card holders.

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.


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