PTI
Mumbai
As it prepares to launch its banking services with motto to become "", IDFC Bank is contemplating a low capex move of not having its own ATMs and making transactions at rivals' ATMs free for customers, a senior official said.
"We feel there is a saturation of ATMs in the market and even after having the machines, you spend on its maintenance. We are looking at not having a network of ATMs," its Head - Personal and Business Banking, Naval Bir Kumar said.
Kumar explained that the money a bank pays for installing and maintaining the ATMs from third parties works out almost the same as the commission or fees paid to other banks for a transaction.
He, however, added that no final decision has been taken on the matter as yet.
IDFC Bank is aiming to start personal banking operations by January.
At present, all the banks have invested in their own ATM networks and customers are charged for transacting at other lenders' ATMs after breaching a fixed number of free transactions a month.
Generally, a bank pays under Rs 20 to another bank for helping its customer carry out a transaction, but Kumar said it can be negotiated down.
The RBI has allowed operations of white-label ATMs, which are being run by non-banking entities, with an eye on generating fees.
At the event, its Executive VC and MD, Rajiv Lall said its market surveys have shown a deep unhappiness among customers about banks and had stressed IDFC Bank's motto to be the different by becoming the "unbank" or "hatke bank".
Lall said the bank does not plan to offer higher rate of interest on saving deposits, as is being done by others like Kotak Mahindra Bank or Yes Bank.
