SBI to set up ATMs at 681 stations

New Delhi, Aug 4 (UNI) India's largest bank -- the State Bank of India -- today forged a ''historic'' deal with the Railways to set up automatic teller machines (ATMs) at 681 railway stations across the country, making travelling in trains a smoother affair and upgrading the profile of passenger amenities.

A Memorandum of Understanding (MoU) to this effect was signed here today between Mr H V Sharma, Executive Director (Passenger Marketing), Railway Board, and Mr Ravi Kaul, General Manager (ATM), SBI, in the presence of Railway Minister Lalu Prasad and Finance Minister P. Chidambaram.

Describing the deal as ''historic'', Railway Minister Lalu Prasad told reporters that the SBI would set up ATMs at the designated stations within a period of 15 months while the Railways' coffers would swell by Rs 10.5 crore annually.

Under the deal having a validity for 20 years, the SBI will also provide ticketing facility through internet kiosk by installing computers at 383 major stations in association with the Indian Railway Catering and Tourism Corporation (IRCTC).

Passengers will be able to buy unreserved tickets, season tickets and platform tickets from these internet kiosks, besides withdrwaing money.

''This is an agreement between two biggest public sector enterprises, and it is a win-win situation for both of them,'' Mr Prasad said.

ATMs at all the 681 stations will be installed within 15 months of the signing of the MoU. Out of 681 stations, 298 are small stations without having ATM facility at present.

The Railways, on its part, will provide six sqm space to the SBI for setting up an ATM while the ATM having facility for providing tickets would be given 1.5 sqm extra space.

Mr Prasad said other national banks had also evinced keen interest in the project. ''In fact, we have already received proposals from various banks for setting up ATMs at another 1,000 stations,''he said.

The signing of the deal was delayed by a month because the Railway Ministry had earlier insisted that the SBI transfer the cash collected at stations through sale of tickets and other activities to the railway treasury.

With the SBI showing its opposition to the move, the ministry later agreed not to insist on the demand, paving the way for the signing of the deal.

The policy for installation of ATMs at railway stations was hammered out in 2001. In five years time around 150 ATMs have so far been installed at major stations.

The SBI had set up its first ATM at a station in the country at Ernakulam in May 2002. The then Minister of State for Railways O.

Rajagopal had inaugurated it.

There are more than 8,000 railway stations in the country, including 681 ''A'' class stations, serving over 16 million passengers a day. Initially, ATMs will be set up at 'A' and 'B' class stations.

Mr Syed Shahabuddin, Chief General Manager (IT), SBI, said the SBI had agreements with 13 banks, including HDFC and the UTI, and credit cards of all these banks would be valid for the ATMs to be set up at the 681 stations.

''We are also looking into the possibility if ATMs can also be set up in running trains. We are holding discussions with the Railway Ministry in this connection,'' he added.

SBI Chairman O P Bhatt said only one ATM would be installed at a station.

Ministers of State for Railways R. Velu and Naranbhai J. Rathwa, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Railway Board Chairman J P Batra, besides the SBI Chairman, were present on the occasion.

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