Six nationalised banks, including Canara Bank and Bank of Baroda, on Wednesday signed an agreement with Indian Railways for setting up more than 700 ATMs at railway stations across the country.
As per the memorandum of understanding, the public sector banks would establish a total of 711 ATMs, of which 473 would have e-ticketing facilities. Canara Bank would set up 225 ATMs, followed by Bank of Baroda (201), Dena Bank (117), Union Bank of India (66), PNB (51) and Indian Bank (51).
"This is a historic MoU which would ease the hardship faced by passengers and help reduce long queues at ticket counters," Railway Minister Lalu Prasad said after the agreement was signed.
The banks are likely to install 250 ATMs by March 2007. This is the second MoU for Railways after the country's largest bank SBI signed an agreement with it in August to install ATMs at 681 stations across the country, with e-ticketing facility at 383 major stations.
The ATMs would earn significant revenues to the railways through renting of commercial space to banks. Similarly, banks would get additional fee-based income through e-ticketing facilities.
The Ministry of Railways has been inviting public sector banks to set up ATMs at stations as part of its drive to convert stations into a travel-cum-business point. At present, there are only 86 ATMs installed at various railway stations in the country.
