National Financial Switch (NFS) was conceptualised, developed and implemented by the Institute of Development and Research in Banking Technology (IDRBT), Hyderabad with a view to inter-connect the ATMs in the country and facilitate convenience banking for the common man.
The Institute started off the switch by connecting the ATMs of three banks. Thereafter, the Institute continuously worked towards bringing all banks on board and by December 2009, the network had grown to connect 49,880 ATMs of 37 banks, thereby emerging as the largest Network of shared ATMs in the country.
The Institute handed over the National Financial Switch to National Payments Corporation of India (NPCI ) on 14 December 2009.
Who can join ATM network through NFS?
Any bank can now join ATM network through National Financial Switch.Any bank with Core Banking Solution with 24 X 7 transaction banking capabilities with ATM or no ATM can now join the National Financial Switch (NFS) through a sponsor bank.
This would facilitate even the non- scheduled Urban Co-op Banks and Regional Rural Banks to have access to the National Network of 1,03,000 + ATMs in the country.
As of January 2013, the NFS Network connects 1,09,664 ATMs of 70 member banks and 46 sub-member banks, which is the largest number of ATMs under a single network in India.
What is the membership criteria to join NFS?
Membership criteria are as follows:-
(a) Bank should have valid Banking License from RBI.
(b) Bank should have Current A/c with RBI.
(c) Bank should have networked ATM and their ATM Switch.
(d) Bank should be RTGS Member of RBI.