Shetab Banking System

The "Shetab" system is the only electronic banking clearance and automated payments system used in Iran. The system was introduced in 2002 with the intention of creating a uniform backbone for the Iranian banking system to handle ATM, POS and other card-based transactions.

Prior to its introduction, some Iranian banks were issuing cards that only worked on the issuing banks ATMs and POS machines. Since the introduction of Shetab, all banks must adhere to its standards and be able to connect to it. Furthermore, all issued credit or debit cards must be Shetab capable.

As of the end of 2003, the Shetab system had 2,926 ATMs and 16,070 POS units connected to it.http://www.irtp.com/laws/re/NATIONAL%20REPORT%202004.pdf]

History

Shetab (Interbank Information Transfer Network) was introduced in 2002, and now all card issuing banks in Iran are required to connect to the system [http://www.nitc.co.ir/bank/page/2503.aspx] . In 2002, when the system was introduced there were at approximately 2.8 million domestic debit cards in circulation, of those approximately 530,000 were capable of using the Shetab system. [http://a248.e.akamai.net/7/248/3622/2a5c666c2dbb17/www.markets.img.hsbc.com/public/tcm/cibm/pcm/pdf/03.12.30%20Iranfinalword.pdf.] By 2010 it is expected that 12 million cards would be issued, all of which work with the Shetab system. [http://www.iran-daily.com/1384/2411/html/focus.htm Iran Daily - Economic Focus - 10/27/05 ] ]

The Agricultural Bank (Bank Keshavarzi) was the first Iranian bank to connect to the Shetab system. [ [http://www.agri-bank.com/Static/English/About/Profile.asp Agri bank - About Us ] ]

Connectivity

* In March 2005 agreements were reached between the Iranian Central Bank and Bahrain's ATM network Benefit as well as the United Arab Emirates's UAES to connect their systems to the Shetab network [ [http://www.iranmania.com/News/ArticleView/Default.asp?NewsCode=30505&NewsKind=Business%20%26%20Economy Iran News - Bahrain, UAE join Iran ATM system ] ] .
* In October 2005, Iran and China linked their banking systems. [ [http://www.mehrnews.com/en/NewsDetail.aspx?NewsID=236691 Iran’s SHETAB system to be connected to Chinese banks ] ]
* In July 2006 the Shetab system was linked with Qatar's ATM network (NAPS). [http://www.qcb.gov.qa/Naps&Shetab.pdf.]
* In May 2008, The automated teller machine (ATM) network of Iran has been linked to those in Bahrain, Qatar and Kuwait, enabling customers to have direct access to their accounts from Iran and the Arab countries. [ [http://www.iran-daily.com/1387/3140/html/economy.htm Iran Daily - Domestic Economy - 05/31/08 ] ]

Members

The following are the banks which are a member of the Shetab network. The list is broken down by the year they have joined.

2002

*Keshavarzi
*Saderat
*Tosea

2003

*Saman

2004

*Melli
*Sanat and Madan
*Karafarin
*Sepah
*Tejarat
*Mellat
*Parsian
*Post bank
*Eghtesad Novin

2006

*Pasargad

2007

*Sarmaye

Impact

As of 2006, Iran was still very much a cash based society. It is expected that a unified clearance system, such as Shetab, will provide significantly greater efficiency, reduce crime, reduce money printing costs, and improve tax collection amongst other benefits. It is also expected to improve the quality of life of citizens whom, once the system is fully operational, would no longer be required to spend large amounts of time organising things in person and would concequently be able to conduct activities immediately over the phone or over the internet. The impact of the system is already being felt as corporations establish e-commerce, supply chains, online banking and retailing systems. [ [http://goliath.ecnext.com/coms2/gi_0199-5533960/IRAN-FIRST-E-BANK-OPENS.html IRAN: FIRST E-BANK OPENS IN TEHRAN. Industry & Business Article - Research, News, Information, Contacts, Divisions, Subsidiaries, Business Associations ] ] [ [http://www.iran-daily.com/1383/2072/html/panorama.htm Iran Daily ] ]

References and notes

ee also

*Communications in Iran
*Economy of Iran
*ATM usage fees
*List of banks in Iran

External links

* [http://www.iran-daily.com/1385/2770/html/focus.htm Iran-Daily: Banking Reforms]