The two banks are, however, yet to decide on the charges to be levied on their customers for use of the network. UTI Bank officials said that charges are likely to be substantially lower than what a customer would have to pay for using a credit card or debit card through the Visa or MasterCard network.
A UTI official said that the network is likely to be operational in a couple of weeks time.
SBI, currently, has 2,250 ATMs while UTI has 1,040 ATMs all over India taking their combined strength of ATMs to 3,290. The agreement was signed on Thursday by UTI Bank senior vice-president retail banking Hemant Kaul and SBI general manager ATM Projects Ajay Swaroop.
The activation of the combined network will give UTI Bank customers access to over 4,500 ATMs across the country. The arrangement is aimed at offering customers of both banks the facility of using the combined network of ATMs, both existing and proposed, of the two banks across India. This will include ATMs of the seven associate members of SBI, said a UTI press release.
UTI Bank already has tie-ups with Citibank which has 125 ATMs, Standard Chartered with 97 ATMs and IDBI Bank which has 280 ATMs. It also has tie-ups with consortiums like Cash Net and Mitr which is a combined network of the Punjab National Bank (PNB), Global Trust Bank (GTB), Bank of Rajasthan (BoR) and Karur Vysya Bank (KVB).
These banks under the Mitr network have about 750 ATMs, wherein GTB has the largest network of around 340 ATMs, PNB with 300 ATMs, while KVB at 70 ATMs.