PRESS RELEASE

 

Corporation Bank inks pact with Karnataka Bank on Point of Sale Network for Retail Payments on Merchant Outlets

1.      Corporation Bank signed a Memorandum of Understanding (MoU) with Karnataka Bank on Pont on Sale Network for Retail Payments at Merchant Outlets. The MoU was signed by Shri B.R.Bhat, General Manager, Corporation Bank and Shri P. Jairama Hande,General Manager, Karnataka Bank at Mangalore, today in the presence of Shri P. Jayarama Bhat, Managing Director & CEO, Karnataka Bank Limited, Shri Ashwani Kumar, Executive Director, Corporation Bank and Senior Executives of both the Banks. Shri Kishore Kothapalli, Managing Director, MRL Posnet Ltd. And Shri Srinivasa Rao, Director, Prizm Payments Services Pvt. Ltd., were present on the occasion.

2.      As per the MoU, Corporation Bank will be providing the Visa Access Point (VAP) and MasterCard Interface Processor (MIP)- the gateways of Visa and MasterCard respectively,which will be required to put through the Point of Sale (POS) Transactions. Corporation Bank will play the role of Settlement bank such transactions. There are around six lakh POS terminals across the country and 29 million across the world tied up with Visa & MasterCard where the cards can be transacted.

3.      Corporation Bank has set up a larger infrastructure with MRL Posnet Pvt.Ltd.- a point of sale network owner having a retail network for electronic delivery of products and services, using point of sale terminals and VISA & Master Cards -which facilitate electronic funds transfers for card transactions taking place at their POS networks.

4.      The Reserve Bank of India is also emphasizing on the usage of Card transactions towards cashless transactions. While POS is gaining momentum Karnataka Bank is now moving towards setting up of POS in  all their 478  branch network.

5.      After signing the MOU, Shri Ashwani Kumar, Executive Director, Corporation Bank said, "Corporation Bank is having a long standing relationship with Karnataka Bank in many areas of business. Karnataka Bank is using Corporation Bank’s e-payment gateway for payment of their various as well as the taxes on behalf of their clients. Corporation Bank is also eyeing for various other services in the future."

6.      On this occasion Managing Director & CEO of Karnataka Bank Ltd., Shri P. Jayarama Bhat expressed his happiness over the tie-up and said that the Pact is "Win-Win" situation for both the organizations. This facility will be helpful to our Merchant Establishment customers and enable the Bank to improve CASA base as well as Fee based income.

7.       On a pilot basis, Karnataka Bank will have 1000 POS terminals in the first phase.