Tata Communications and Axis Bank are tying up in a first-of-its-kind arrangement under which the IT infrastructure company will help the bank manage its ATMs and credit card machines.
The deal will help real-time transactions by Axis through an outsourced service, with the bank providing reserve funds to meet Reserve Bank’s regulatory requirements.
Real-time transactions are possible only through the Real Time Gross Settlement (RTGS) system for transactions of more than Rs 1,00,000.
“Real- time transaction requires a bank to provide risk mitigation services, and provide you have a backup for the day’s transactions,” said Rajiv Singh, president, Tata Communications Banking Infrastructure Ltd.
The service would be part of TCIL’s foray into managing ATMs and credit card machines on behalf of banks.