ATM operating agencies-companies by Public Sector Banks. Total ATMs for Scheduled Commercial Banks as on June 30, 2016 is 201334

ATM operating agencies-companies by Public Sector Banks. Total ATMs for Scheduled Commercial Banks as on June 30, 2016 is 201334

ATM operating agencies/companies by Public Sector Banks

Banks have been permitted outsourcing of financial services vide circulars dated November 3, 2006 and March 11, 2015 on ‘Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by Banks’ issued by Reserve Bank of India (RBI).

Due diligence in outsourcing involves an evaluation of all available information about the service provider, inter alia including but not limited to security and internal control, audit coverage, reporting and monitoring environment, Business continuity management. The terms and conditions governing the contract between the bank and the service provider should be carefully defined in written agreements and vetted by bank”s legal counsel on their legal effect and enforceability.

Total ATMs for Scheduled Commercial Banks as on June 30, 2016 is 201334. The details of White Label ATMs (WLAs) managed by agencies is as under:-

Regular audits by either the internal auditors or external auditors of the bank is conducted to assess the adequacy of the risk management practices adopted in overseeing and managing the outsourcing arrangement.  The audit reports are to be acted upon by the banks.

This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

*****