August 7, 2002	Wednesday	Jamadi-ul-Awwal 27,1423

KARACHI, Aug 6: The State Bank has asked all the banks that they should join or come to an agreement with two existing ATM switch networks of MCB and ABN Amro if they are not currently connected to either of the two.

The central bank has set December 31 as the deadline for this purpose.

A circular (BPD No 20) issued by the State Bank says that the purpose for asking the banks to get connected through either of the two ATM switch networks is to bring efficiency in the payment systems.

The existing two ATM switch networks of MCB and ABN Amro are also in the process of being connected to each other which will subsequently allow their mutual customers and their existing member banks to have access to over 250 ATMs (combined) across Pakistan.

The SBP has asked the banks that are not currently part of either of the two networks to contact MCB or ABN Amro bank and also provide a summary of plan to the SBP by October 31 2002. The summary should mention the target date by which the bank would be connected online with either of the two ATM switch networks.

“The banks should further ensure that their system must be connected online to either of the two switches by June 30, 2003.”

“Those banks which have ATM networks of their own but are not member of either of these two switches will also be able to add their respective ATMs on to the switch network which will consequently increase the overall ATM coverage.”

“The existing switches or third-party solution can be opted to facilitate connectivity for those banks which are not yet connected to either of the two switches or are operating their network independently.”

“As a further measure to reduce the start-up cost of joining the switches and managing the issuance of cards such banks can also opt to outsource the card production services” to MCB or ABN Amro switch networks “or to a third party.”