Private sector lender, YES Bank is coming up with new ATMs on ousourced model. The bank would be outsourcing more than 3000 ATMs and has already signed an agreement for the same with First Data Corporation which is a US based payment processing company. As per the agreement, the company would be looking after the management and functioning of ATMs.
"We have talked to the Reserve bank of India regarding opening ATMs on outsourced model. Their main concern is security and reputation of the system. We will meet all those needs," said Somak Ghosh, group president (corporate finance & development banking) of YES Bank.
The global economic meltdown last year has made this process of bringing up ATMs on an outsourced model lucrative for banks like YES Bank and Dhanlaxmi Bank.
Banking giant, State Bank of India has also chalked out the idea to roll out 500 ATMs in association with Tata Communications and C-Edge. Bank of Baroda has also indicated the plan to be a lucrative one and may implement it soon.
"While the management of ATMs will be with the US-based company, we will do the cash refilling," Ghosh said. The bank aims to set up 750 branches and 3,750 ATMs by March 2015. The bank also has plans to foray into retail segment.
"We are planning to introduce specialised retail solutions in the home loan and personal loan categories," Ghosh said. "Now, banks do not offer tailor-made home loan products for different professions. We will concentrate on that category. For doctors, we may offer additional loans for their chambers and equipment, along with home loans," he added.