Another Indian Bank To Outsource Its ATM operations

Axis Bank soon will outsource its ATM operations, an official for the Mumbai-based bank tells PaymentsSource. The financial institution is in the final stages of selecting a vendor for the outsourcing, says the official, who wished to remain anonymous.

The bank began the outsourcing process about eight months ago, the official says. The bank’s ATM network includes about 4,000 machines.

“The decision should be final by March,” the official says. “Currently, Tata Communications Banking InfraSolutions, AGS Infotech and Prizm Payments are the vendors which are in the race for the deal.”

Comment from the potential vendors was not immediately available. The bank likely will sign a two- or three-year outsourcing contract, the official says.

Axis Bank is the latest India-based financial institution to outsource or consider outsourcing ATM operations. In August, for example, AGS Infotech won a contract to deploy and maintain ATMs for the State Bank of India.

Indian banks are moving to outsource more of their ATM activities in the wake of rule changes from the Reserve Bank of India that have loosened requirements for ATM networks (see story).

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