The first ATM in India was set up in 1987 by HSBC in Mumbai. In the following twelve years, about 1500 ATMs were set up in India. After the contract with ISC expired, IBA failed to find ez system forex bidder to manage the operationally uneconomical network, and shut it down on 31 December 2003. The IDRBT collaborated with Euronet Worldwide and Opus Software to build a platform to allow banks to connect their own switches to the NFS.
The NFS consisted of an inter-ATM switch and a e-commerce payment gateway. The National Financial Switch was launched by the IDRBT on 27 August 2004, connecting the ATMs of three banks, Corporation Bank, Bank of Baroda and ICICI Bank. IDRBT decided to hive off its operational role on ATM switching to refocus on research and development, and was sought to shift the business to a national-level payment system organization. IDRBT on the feasibility of taking over. Any bank that provides core banking services with 24×7 transaction banking capabilities with or without ATMs may join the National Financial Switch through a sponsor bank. The primary headquarters is located at Mumbai.