National Financial Switch

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National Financial Switch
Operating area India

78 members

164 sub-members
ATMs 166928
Founded 27 August 2004

National Financial Switch (NFS) is the largest network of shared automated teller machines (ATMs) in India.[1] It was designed, developed and deployed by the Institute for Development and Research in Banking Technology (IDRBT) in 2004, with the goal of inter-connecting the ATMs in the country and facilitating convenience banking for the average Indian. It is run by the National Payments Corporation of India (NPCI).


The first ATM in India was set up in 1987 by the The Hongkong and Shanghai Banking Corporation in Mumbai.[2] In the following twelve years, about 1500 ATMs were set up in India. In 1997, the Indian Banks' Association (IBA) set up Swadhan, the first network of shared ATMs in India. It was managed by India Switch Company (ISC) for five years, and allowed cardholders to withdraw cash from any ATM in the network, for a fee if they did not have an account with the bank that owned the ATM. In 2002, the network connected over 1000 ATMs of the 53 member banks of the association. The network was capable of handling 250,000 transactions per day, but only 5000 transactions, worth about INR100,000, took place each day. In contrast, ICICI Bank's network of about 640 ATMs handled transactions worth about INR20,000,000 each day. After the contract with ISC expired, IBA failed to find a bidder to manage the operationally uneconomical network, and shut it down on 31 December 2003.

After the collapse of Swadhan, Bank of India, Union Bank of India, Indian Bank, United Bank of India and Syndicate Bank formed an ATM-sharing network called CashTree. Citibank, the Industrial Development Bank of India, Standard Chartered Bank and UTI Bank formed a similar network called Cashnet. Punjab National Bank and Canara Bank also created such networks.

In August 2003, the IDRBT announced that it would be creating the National Financial Switch (NFS) to link together the country's ATMs in a single network.

The IDRBT collaborated with Euronet Worldwide and Opus Software to build a platform to allow banks to connect their own switches to the NFS. The NFS consisted of an inter-ATM switch and a e-commerce payment gateway.


The National Financial Switch was launched by the IDRBT on 27 August 2004, connecting the ATMs of three banks, Corporation Bank, Bank of Baroda and ICICI Bank.[3][4][5] The IDRBT then worked towards bringing all major banks in India 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.

IDRBT decided to hive off its operational role on ATM switching to refocus on research and development, and was sought to shift the business to a national-level payment system organization. The National Payments Corporation of India (NPCI) started discussions with IDRBT on the feasibility of taking over. The Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) at its meeting held on 24 September 2009 approved in-principle to issue authorisation to NPCI for operating various retail payment systems in the country. The Reserve Bank of India granted authorisation to NPCI to take over the operations of National Financial Switch (NFS) from the Institute of Development and Research in Banking Technology (IDRBT) on a ‘as is where is basis’ on 15 October 2009. NPCI deputed its officials to IDRBT Hyderabad, and the Institute handed over the National Financial Switch to the NPCI on 14 December 2009.

Any bank that provides core banking services with 24x7 transaction banking capabilities with or without ATMs may join the National Financial Switch through a sponsor bank. This allows non-scheduled Urban Co-operative Banks (UCBs) and Regional Rural Banks (RRBs) to gain access to the national network of over 103,000 ATMs in the country. Before 14 August 2011, access was limited to scheduled banks with RTGS membership.[6] The sponsorship scheme was started to increase the connectivity of ATMs across the country, and to enable customers to use ATMs across India.

The primary headquarters is located in the IDRBT Campus at Hyderabad, and a satellite site is located in Mumbai.

Member banks[edit]

As of May 2014, the NFS Network connects 1,66,928 ATMs of 78 member banks, 164 sub-member banks, 47 RRB member banks and 4 white-label ATM providers, which is the largest number of ATMs under a single network in India. Bhartiya Mahila Bank has joined the National Financial Switch ATM network as the 83rd member by issuing RuPa's chip based debit cards.[7]

NFS Member Banks ATMs
Bank Number of ATMs
Abhyudaya Co-operative Bank 109
Allahabad Bank 940
Andhra bank 1,907
APNA Sahakari Bank ltd 44
Axis Bank 13,465
Bank of Bahrain and Kuwait 3
Bank of Baroda 6,514
Bank Of India 4,784
Bank of Maharashtra 1827
Bassein Catholic Co-operative Bank Ltd 30
Canara Bank 6,476
Catholic Syrian Bank 231
Central Bank of India 3,683
Citibank 583
City Union Bank 941
Corporation Bank 2,625
Cosmos Bank 137
Dena Bank 1,432
Deutsche Bank 32
Development Bank of Singapore 35
Development Credit Bank 232
Dhanalakshmi Bank 396
Dombivli Nagarik Sahakari Bank 33
Federal Bank 1,270
First Rand Bank Ltd 7
Gopinath Patil Parsik Janata Sahakari Bank Ltd 32
HDFC Bank 11,177
HSBC Bank 144
ICICI Bank 11,098
IDBI Bank 1,930
Indian Bank 1,607
Indian Overseas Bank 2,149
Indusind Bank 1,025
ING Vysya Bank 618
Jammu and Kashmir Bank 726
JanaKalyan Sahakari Bank 16
Janata Sahakari Bank 33
Kallappanna Awade Ichalkaranji Janata Sahkari Bank 24
Kalyan Janata Sahakari Bank 30
Karnataka Bank 568
Karur Vysya Bank 1,468
Kotak Mahindra Bank 1,004
Lakshmi Vilas Bank 688
Mahanagar Co-operative Bank 35
Mehsana Urban Co-operative Bank 13
NKGSB Co-operative Bank 76
Nutan Nagarik Sahakari Bank 2
Oriental Bank of Commerce 1,697
Punjab and Maharashtra Co-operative Bank 92
Punjab and Sind Bank 388
Punjab National Bank 6,577
Saraswat Co-operative Bank 183
Shamrao Vithal Bank 147
Standard Chartered Bank 279
State Bank of India 38,779
Syndicate Bank 1,363
Tamilnaad Mercantile Bank 542
Thane Janata Sahakari Bank 92
The A.P. Mahesh Co-operative Urban Bank Ltd 4
The Bharat Co-operative Bank ltd. 49
The Greater Bombay Co-operative Bank 21
The Kalupur Commercial Co-Op Bank Ltd 36
The Karad Urban Co-operative Bank ltd 21
The Municipal Co-operative Bank Ltd 4
The Ratnakar Bank Ltd 243
The South Indian Bank 878
The Surat People’s Co-operative Bank Ltd 15
The West Bengal State Co-operative Bank Ltd 5
UCO Bank 1,768
Union Bank Of India 5,337
United Bank of India 1,086
Vijaya Bank 1,001
Woori Bank 1
Yes Bank Ltd 1,122
Total 166,928

NFS Total ATM Coverage
Member type No of banks No of ATMs
Member banks 78 166,928
Sub-member banks 164 835
RRB member banks 47 82
White-label ATM providers 4 2239
Total 293 170,084


  1. ^ "Barclays ATM network linked to National Financial Switch". The Economic Times (Mumbai: The Times Group). Press Trust of India. 2010-04-19. Archived from the original on 2014-04-29. Retrieved 2014-05-01. 
  2. ^
  3. ^ "Common gateway to allow PSU bank customers to shop online". Economic Times (Mumbai: The Times Group). Press Trust of India. 2004-06-23. Archived from the original on 2014-04-29. Retrieved 2014-05-01. 
  4. ^ "Euronet Worldwide selected as turnkey solution provider for India’s national financial switch". Leawood: Euronet Worldwide. 2004-05-20. Archived from the original on 2014-05-01. Retrieved 2014-05-01. 
  5. ^ "Banks switch to interconnectivity". Economic Times (Mumbai: The Times Group). Press Trust of India. 2004-06-23. Archived from the original on 2014-04-29. Retrieved 2004-08-31. 
  6. ^ "Any bank can now join national financial switch: NPCI". Economic Times (Mumbai: The Times Group). Press Trust of India. 2011-08-14. Archived from the original on 2014-04-29. Retrieved 2014-05-01. 
  7. ^ "NFS Member Banks ATMs". National Payments Corporation of India. Archived from the original on 2014-02-08. Retrieved 2014-05-01. 

External links[edit]