GCC-wide ATM switch finally becomes reality

The common GCC ATM switch has become a reality following the linking of Oman to the UAE switch, and more than 50 per cent of the ATM outlets in the common switch are in the UAE.

The long-awaited common GCC switch which has 1,287 ATMs in Saudi Arabia, Qatar, Bahrain, Kuwait, Oman and the UAE, has 756 ATMs in the UAE. The scene with the number of participating banks also is no different. Of the 75 banks participating in the switch, 37 are in the UAE, accounting for 50 per cent.

This also means that most UAE-based banks are already in the common GCC switch except a few which do not have an ATM system. According to banking sources, at least one UAE bank is said to be running an offline ATM system which prevents it from joining the common switch.

Although all GCC states are interconnected through the country switch, several banks in these states have yet to be integrated into the common GCC switch for want of the upgrading of their system.

With the common GCC switch in place, a link-up with Europe need not be ruled out. Europe is already linked up, making it easy for any country to get linked to it through a single gateway.

The GCC-wide ATM switch has become a reality at a time when banks are working overtime to promote credit cards.

However, the customer charge for withdrawing cash from an ATM in another country has not been announced. Since complex settlement and exchange systems are involved, there will inevitably be a fee, banking sources said.

Within the UAE, most banks charge for the use of their ATMs by other banks' customers. But there are a few banks with only a few ATMs which do not pass this charge on to their customers.