Yes Bank has signed an ATM contract with First Data Corporation, which is an American payment processing company. According to the contract, FDC will establish 3000 ATMs for the bank in a period of 5 years with Yes Bank having to disburse transaction-based fees.
The bank has scheduled to utilize 500 ATMs by the August of 2010. Yes Bank decides to register 3000 ATMs by the year 2015. According to the contract, the ATM machines will be FDC’s property, whereas the legal accountability of the ATMs will be with Yes Bank as Reserve Bank of India does not permit non-banks to establish ‘white-label’ ATMs. Yes Bank will provide banking facilities like complaints management, cash management and interbank settlement.
This contract will assist the private sector bank to reduce its capital outlay as the charge of establishing ATMs will be acquired by FDC. The price of establishing an ATM is Rs.8lakh that also consists of expenses like other periphery costs and rentals. The investment acquired on it breaks even when an ATM machine registers a minimum of 100 transactions on a daily basis. The standard transaction per ATM remains at 225 in India.
This contract is first of its kind in the country, as ATMs are being put in by a third-party expertise company for a bank. In the initial stage, ATMs will be set up in Delhi NCR regions and Mumbai.