HDFC bank and Kotak Mahindra Bank to share ATM network

HDFC bank and Kotak Mahindra Bank to share ATM network

HDFC Bank and Kotak Mahindra Bank have gone into collaboration and signed on a Memorandum of Understanding (MoU) for sharing their ATM network. The deal would enable their customers to use ATM machines of each other’s network around the country.

However, the deal is not much of much use to the customers of the HDFC bank, as they would be required to pay a small fee for using the ATM machines of Kotak Mahindra Bank. Though, the customers of KMB would be free to use the extensive ATM network of HDFC bank.

HDFC Bank has 1,335 ATMs, while KMB has 75 ATMs across the nation. The deal was signed on between HDFC Managing Director Aditya Puri and KMB Executive Vice-Chairman and Managing Director Uday Kotak.

This is just the latest of such deals between the various private banks existing in the country. This enables them to cut costs and focus on other initiatives without spending a lot of money on expanding their base of ATM kiosks around the nation.