Activities of National Financial Switch or NFS explained

National Financial Switch (NFS) is the largest network of shared automated teller machines (ATMs) in India. It was designed, developed, and deployed with the aim of inter-connecting the ATMs in the country and facilitating convenience banking. The network was taken over by NPCI from Institute for Development and Research in Banking Technology (IDRBT) on December 14, 2009. At the time of taking over of the network by NPCI, there were 37 members connecting about 50000 ATMs.  Since then the network has grown many folds and is now the leading multilateral ATM network in the country. As of 30th Apr’ 21, there were 1,181 members that include 107 Direct, 1,025 Sub members, 45 RRBs, and 4 White Label ATM Operators (WLAOs) using NFS network connected to more than 2.52 Lac ATM (including cash deposit machines/recyclers). NPCI has also tied up with International card schemes like Discover Financial Service (DFS), Japan Credit Bureau (JCB), and China UnionPay International (CUPI) which allows their cardholders to use ATMs connected to the NFS network.

With the operational functions and services with in-house capabilities, the NFS network is now at par with most of the global ATM networks. Apart from basic transactions like Cash Withdrawal, Balance Enquiry, PIN Change, and Mini Statement, NFS also offers the following Value Added Services (VAS) to the customers of the banks on ATMs/CDMs:

1. Interoperable Cash Deposit (ICD): Many Banks have Cash Recyclers/Cash Deposit Machines for catering to their own customers, which can be enabled for interoperable transactions. In the interoperable cash depositor, the service enables cardholders of any participating member banks to use Cash Recyclers/Cash Deposit Machines of another participating member banks for depositing cash in their own account or third-party account. It means you can deposit money at a deposit cash recycling machine/cash deposit machine operated by another bank. The currency notes put in the cash slot passes through a bill validator. The invalid and counterfeit notes kept aside by the machine and the correct amount of cash deposited, along with the denominations are captured and instantly credited to the account of the depositor or to the third-party account. The customer gets an acknowledgment slip confirming the transaction.
2. Mobile Banking Registration (MBR): Although Mobile number updation is not available through NFS networked ATMs, if the mobile number is updated in the card holder’s bank account, he can register for mobile banking using ATM. It is important that the cardholder’s bank has enabled this service through NFS.
3. Card-to-Card Fund Transfer (C2C):  Under the C2C transfer facility, the cardholder of the network bank will be able to transfer funds to another bank account through the NFS network.
4.  Cheque Book Request (CBR): CBR service enables cardholders of participating member banks to request for Cheque Book using any other participating member Bank’s ATM.
5. Statement Request (SR): The statement request service enables a cardholder of an NFS network bank to request for account statement using any other participating member Bank’s ATM.
6. Aadhar Number Seeding (ANS):  ANS service enables cardholders of a participating bank to request for seeding of Aadhaar number in the account linked to the card using any other participating Bank’s ATM.

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