March 7: Cooperatives will now be able to issue ATM cards under the 'Coop Brand'. The National Cooperative Bank Limited has collaborated with Smart Choice Technology (SCT), a payment service provider, and Global  IME Bank to start debit card service. The National Cooperative Bank signed a tripartite  agreement with SCT and Global IME Bank to this effect on Sunday, March 6.

CEO of the National Cooperative Bank Badri Kumar Guragain informed that the cooperatives will be able to issue ATM cards for their customers within three months.

The central bank has included a provision in the monetary policy of the current fiscal year to allow payment system operators and service providers to provide electronic transaction service to the cooperatives. As per the provision, some big cooperatives have reached an understanding with SCT to issue debit cards to their customers.

The Federal Department of Cooperatives had also issued an integrated directive on February 13 allowing cooperatives to collaborate with payment service providers to introduce services such as ATM, QR Code, mobile banking among others.

The cooperatives must mention this in their company statute and inform the governing body within a month after introducing such services.

CEO Guragain informed that cooperatives with small investment cannot provide ATM service so they too have been allowed to provide debit card service through the National Cooperative Bank.

"Now, the cooperatives can collaborate with banks to issue ATM cards," he said.

Such cards can be used free of cost at more than 300 ATM counters of Global IME Bank. They can also be used for payment at PoS terminals and departmental stores.

Until now, some cooperatives had been issuing ATM cards in collaboration with SCT but they had to make the settlement through Himalayan Bank by depositing a certain amount. However, the cooperatives will have to bear less financial burden if they avail this service through the National Cooperative Bank.