Until recently, there was a limit on transaction-size. This was because state-run banks had few computerised branches. Customer details were provided, the database was then put on the main switching network and the account got debited on the third morning. There was therefore no instant debiting from the account.

`Swadhan' now offers all-India connectivity to two banks - IDBI Bank and the Bank of Punjab (BoP). Sources from the IBA said: "IDBI Bank and BoP are the two banks whose ATMs are connected to the `Swadhan' switch. The transaction is linked to the account and the money gets instantly debited". IBA is in the process of providing on-line connectivity to Citibank, Centurion Bank, UTI Bank and ICICI Bank.

A committee of bankers, after extensive deliberation, had set up a service provider called the `Indian Switch Company' to oversee the `Swadhan' network.

`Swadhan' has 34 participating banks and a network of 244 ATMs. Daily transactions on the network now number 2,000 per day. IBA also plans to link up with MasterCard International to enable MasterCard-holders to transact on the `Swadhan' network. The bank whose ATM has been used to put through the transaction will get a commission of $2.5. Commenting on the issues faced by `Swadhan', an IBA official said: "Initially, there was a failure of the datacircuit line, which led to the break-down of some ATMs. But now, with the technology in place, that problem has been solved. The issue, however, is that banks have to strive hard to publicise the network. The number of transactions, which are not at an optimum level, should be increased and ATM-cards should be made popular for cash-withdrawals. This effort needs to be tackled by the state-run banks. IBA's main focus, however, is now on converting the off-line scenario into a completely on-line arrangement to bring about increased usage of the network".

IBA also has an electronic clearing service (ECS), which can be used to pay for utility bills like telephone and electricity bills. The `Swadhan' network card can also be used to support `point-of-sales' (POS) terminals at merchant establishments. POSs are electronic devices which capture transaction-data, and an on-line system allows for deals to get linked up with customer-accounts directly.