FSS aids ATM sharing in Nepal

National Bank, India (PNB) and Everest Bank Ltd. (EBL), Nepal has agreed to share their ATMs network for their cardholders on either side of the border. Chennai based Financial Software and Systems (FSS) has provided the cross country ATM sharing solution via FSSNeT, the outsourcing division of FSS. This is the first time in India, an Indian bank would use domestic network for transaction sharing with a foreign bank. 

In Nepal, EBL has outsourced its ATM transaction processing services to Smart Choice Technology (SCT). FSSNeT has tied up with SCT and has established a data communication network connecting the two networks. Thus both bank card holders can avail of ATM services amongst both banks’ ATMs. PNB would be the settlement bank, to whom FSS would provide settlement reports, with appropriate currency conversion. With FSSNet tying up with SCT, PNB now has opportunities to tie up with other Nepal based banks in SCT’s network for further ATM sharing. 

Nagaraj Mylandla, Managing Director, FSS “For the first time in the history of payment systems in India, two banks across two countries will connect to each other through domestic networks, bypassing the need to go through international interchanges, resulting in lower cost of services for both banks and their customers.

Bank networks in neighbouring countries including Sri Lanka, Bhutan and the Middle East have shown keen interest in connecting to FSSNeT. This will be an ideal opportunity for Indian banks to offer a cost effective solution for transaction sharing with their counter parts in these countries.

K.S. Bajwa, General Manager, Punjab National Bank, says “Our customers can have ready access to their accounts on any of Everest Bank's ATM in Nepal and vice versa. This being our first bilateral cross border ATM sharing arrangement, we look forward to tying up with various leading banks in our neighbouring countries."

FSSNeT services include ATM and POS deployment and management, ATM sharing amongst banks, international and domestic interchanges connectivity, mobile and electronic bill payment and shared payment gateway.