Shared ATM which technology
VerifiedAnswer: NFS(National Financial Switch)
Explanation:
The National Financial Switch (NFS) is the backbone technology that enables shared ATM services across India. This centralized switching and settlement system allows customers of one bank to use ATMs operated by other banks seamlessly.
NFS was established by the National Payments Corporation of India (NPCI) in 2008 to create an interconnected network of ATMs across the country. Before NFS, customers could only use their own bank's ATMs, which severely limited access to cash withdrawal services, especially in remote areas.
The key features of NFS technology include:
• Interoperability: Connects ATMs of different banks to create a unified network • Real-time processing: Enables instant transaction verification and authorization • Secure communication: Uses encrypted channels for safe data transmission • Settlement mechanism: Facilitates automatic fund settlement between participating banks • 24/7 availability: Provides round-the-clock ATM services across the network
When you use an ATM that doesn't belong to your bank, NFS acts as the intermediary. It routes your transaction request from the host ATM to your bank's server for authentication and authorization. Once approved, the transaction is completed, and the settlement between the two banks happens automatically through the NFS platform.
Today, NFS has revolutionized banking convenience in India by connecting thousands of ATMs nationwide. This technology has made cash access more convenient for millions of customers, regardless of their bank or location, contributing significantly to financial inclusion and digital banking growth in the country.
