Public sector lender, Union Bank of India is aiming to outsource the work of installation as well as maintainance of 1000 ATMs. The move comes as part of its motive to bring up different other models of business operations.

As per the Request for Proposal (RFP) set for the same, the bank is planning to set up outsourced ATMs in 9 zones which include Mumbai, Delhi, Lucknow and Bhopal.

The branch count of hte bank stands at 5017 as on December 2010 while ATM count figures to 2516.

So far Axis Bank has entered into such ATM outsourcing deal. Union Bank has however kept this option available that after three years it may buyback the ATM and site infrastructure. It has been estimated that the initial investment for the same would amount to Rs 8.3 lakh.

The alternative banking channels to be used by the lender to carry forward its business operations are ATMs, online banking, phone banking, mobile banking and banking correspondents.