More banks roped in to set up ATMs at railway stations

The penetration of Automated Teller Machines (ATMs) across the Indian Railways network is set to increase further by the end of this fiscal.

The penetration of Automated Teller Machines (ATMs) across the Indian Railways network is set to increase further by the end of this fiscal. Having already partnered seven nationalised banks for installing more than a thousand ATMs at railway locations across the country, Indian Railways has now decided to allow nine more banks to set up similar machines at 440 locations.

The new banks that Railways has zeroed-in on for setting up the ATMs include Indian Overseas Bank, Syndicate Bank, United Commercial Bank (UCO), Unit Trust of India Bank (UTI), Housing Development Finance Corporation (HDFC) Bank, ICICI Bank, J&K Bank, Bank of India and Bank of Rajasthan. The ministry has asked these banks to complete installation of these ATMs across the 16 zonal railways before March 31, 2008.

Out of these 440 machines, Western Railways would get 75 ATMs, while Central and Northern Railways would get 65 and 63 machines, respectively. Southern Railways and North Western Railways would get another 54 and 53 ATMs respectively.

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To accelerate the installation process, Railways has decided not to ask for a security deposit for electricity, as it had asked from all the banks it had entered into agreements with previously. Further, with the provision of Internet ticketing in mind, the ministry has asked for providing these sites near booking zones. Banks will also be allowed to install V-sat antennae wherever they deem fit at stations.

Rail Bhawan has also shot off a missive to all the Zonal Railways asking them to take “all necessary steps to ensure expeditious installation of Automated Teller Machines at the railway stations” and ensure that installation is not “delayed on account of Railways”.

Last year, Railways had entered into an agreement with State Bank of India for installation of ATMs at 681 railway stations across the country. Subsequently, the ministry decided to rope in six more banks—Canara Bank, Punjab National Bank, Indian Bank, Dena Bank, Union Bank of India and Bank of Baroda—to set up 711 Automated Teller Machines at railway stations.