HDFC Bank not to cut its ATM rollout plans

HDFC Bank does not intend to cut on its automated teller machines (ATM) rollout plan in spite of the Reserve Bank giving an in-principle nod for white label ATMs, which will be operated by non-banking companies, a top official said today.

The bank will not cut its ATM rollout target as a result of the RBI’s draft guidelines allowing non-banking entities to set up ATMs, also called as white-label ATMs, said Mr Rahul Bhagat, HDFC Bank Head (Direct Banking Channels).

Asked about the cost of setting up an ATM, Bhagat said up to 50 per cent of transactions in its existing ATMs are done by non-HDFC Bank account holders, resulting in good fee income, which will take care of the installation cost.

Moreover, he pointed out that when a bank sets up an ATM, it is also about giving the customer a feel of the service that each bank wants to give out on its own.

Meanwhile, HDFC Bank today tied-up with Visa and Monitise—promoted Movida to facilitate mobile—based transactions for its debit and credit card—holders.

Under the service, mobile phone users using any handset and even without Internet connectivity will be able to pay for services like electricity bills and mobile recharges.