NEW DELHI: The State Bank of India on Friday signed a memorandum understanding with the Railways to set up automated teller machines (ATMs) at 681 stations across the country.

H. V. Sharma, Executive Director (Passenger Marketing), Railway Board, and Ravi Kaul, General Manager (ATM), SBI, signed it in the presence of Railway Minister Lalu Prasad and Finance Minister P. Chidambaram here.

"Historic deal"

Hailing the "historic" deal, Mr. Prasad told reporters that the SBI would set up the machines within 15 months and the railway coffers would swell by Rs. 10.5 crore annually. The Railways got offers from other public sector banks also to set up 1000 ATMs and the arrangement would be firmed up in the near future.

Under the 20-year deal, the SBI will also provide ticketing facility through Internet kiosks, installing computers at 383 major stations in association with the Indian Railway Catering and Tourism Corporation.

Besides drawing money, passengers can buy unreserved tickets, season tickets and platform tickets from these kiosks.

Out of the 681 railway stations, 298 are small ones without ATM facility now. There are more than 8,000 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.

The Railways will provide a six-square metre space to the SBI for setting up an ATM. The ATM with facility for issuing tickets will get an extra space of 1.5 sqm.

Why delay

The signing of the deal was delayed by a month. For, the SBI opposed the Railway Ministry's insistence that the bank transfer the money collected from sale of tickets and other activities to the railway treasury. Later the ministry agreed not to insist on the demand.

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