Mumbai, July 17 (KNN) RBI has allowed banks without ATM network to issue debit cards in tie-up with a bank that has its own network as it pushes for cashless transactions. Co-operative banks will also be allowed to issue debit cards with a bigger bank as a sponsor. 

“We have been receiving representations from banks not having their own ATMs seeking permission to issue ATM-cum-debit cards to their customers in tie-up with banks having their own ATM network,” RBI said.
 
 As a precursor to moving towards a less-cash economy, it is necessary to inculcate the habit of using electronic payment channels among bank customers.
 
 With this in view, it has been decided to permit co-operative banks which are CBS enabled, to issue ATM cards/ ATM-cum-debit cards in tie-up with a sponsor bank.
"The matter has been examined keeping in view the requirement to become a direct member or a sub-member of the National Financial Switch (NFS) for carrying out such transactions," RBI said. 

Banks need to be core banking solution (CBS) enabled along a licence for conduction banking business. They should also be connected with NPCI for operation. (KNN Bureau)