National Financial Switch
With a view to inter-connect the ATMs in the country and facilitate easy banking for the common man, the Institute of Development and Research in Banking Technology (IDRBT), Hyderabad conceptualized, developed and implemented the National Financial Switch. The National Financial Switch facilitates routing of ATM transactions through inter-connectivity between the Bank’s Switches, thereby enabling the citizens of the country to utilize any ATM of a connected bank. The National Financial Switch was dedicated to the Nation on August 27, 2004. 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 IDRBT had been providing ATM switching service to banks in India through National Financial Switch . IDRBT decided to hive off its operational role on ATM switching to have focus on research and development and was looking for a suitable arrangement for shifting this business to some national level payment system organization. National Payments Corporation of India (NPCI) considered this as an opportunity and started discussions with IDRBT on the feasibility of taking over. NPCI is an umbrella institution for all the Retail Payments Systems’ in the country.