Shetab Banking System
Encyclopedia
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.
In 2005, the government obliged the Central Bank of Iran and the Iranian banks, mostly state owned, to set up all the necessary infrastructures (regulatory, hardware, software) for fully launching e-money in Iran by March 2005. While this plan has not yet fully materialised, local debit/credit cards are now commonplace and have removed the main obstacle to the growth of e-commerce (in the national scale) as well as the full roll out of e-government initiatives. By 2010 it is expected that 12 million cards would be issued, all of which work with the Shetab system.
The Agricultural Bank (Keshavarzi Bank
) was the first Iranian bank to connect to the Shetab system. Saman Bank
was the first bank to introduce online banking
services in Iran. Since, it has been at the forefront of expansion and enhancement of electronic banking.
, Kuwait
and Bahrain
are members of the Shetab System, as follows:
. The impact of the system is already being felt as corporations establish e-commerce, supply chains, online banking
and retailing systems.
In 2007, Tetra-Tech IT Company announced that using VISA
and MasterCard
is now possible for online sales and in Iranian e-card terminals at shopping malls, hotels, restaurants, and travel agencies for Iranians and foreign tourists.
Iran's electronic commerce
will reach 10,000 billion rials ($1 billion) by March 2009.
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
. The system was introduced in 2002 with the intention of creating a uniform backbone for the Iranian banking system to handle ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
, POS
Point of sale
Point of sale or checkout is the location where a transaction occurs...
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.
History
Shetab was introduced in 2002, and now all card issuing banks in Iran are required to connect to the system. 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.In 2005, the government obliged the Central Bank of Iran and the Iranian banks, mostly state owned, to set up all the necessary infrastructures (regulatory, hardware, software) for fully launching e-money in Iran by March 2005. While this plan has not yet fully materialised, local debit/credit cards are now commonplace and have removed the main obstacle to the growth of e-commerce (in the national scale) as well as the full roll out of e-government initiatives. By 2010 it is expected that 12 million cards would be issued, all of which work with the Shetab system.
The Agricultural Bank (Keshavarzi Bank
Keshavarzi Bank
Keshavarzi Bank, also known as Agribank, is a major Iranian banking establishment offering retail and commercial services. The company was established in 1933 and as a Farming and Industrial Bank...
) was the first Iranian bank to connect to the Shetab system. Saman Bank
Saman Bank Corp
-History:Saman Bank Corp. is a 100 percent privately owned bank and is not listed in tehran stock exchange. This bank started its activities as Credit Institution in September 1999. Subsequently, in August 2002, it received a full banking license and changed its name to Saman Bank...
was the first bank to introduce online banking
Online banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
services in Iran. Since, it has been at the forefront of expansion and enhancement of electronic banking.
Connectivity
- In March 2005 agreements were reached between the Iranian Central Bank and BahrainBahrain' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
's ATM network BenefitThe Benefit CompanyThe Benefit Company is the local switch in the Kingdom of Bahrain handling ATM and POS transactions. Established in 1997 with a special license from the Central Bank of Bahrain as "Provider of Ancillary Services to the Financial Sector", it is the only financial network of its kind in the...
as well as the United Arab EmiratesUnited Arab EmiratesThe United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...
's UAES to connect their systems to the Shetab network . - In October 2005, Iran and ChinaChinaChinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
linked their banking systems. - In July 2006 the Shetab system was linked with QatarQatarQatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
's ATM network (NAPS). - In May 2008, The automated teller machine (ATM) network of Iran has been linked to those in BahrainBahrain' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
, QatarQatarQatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
and KuwaitKuwaitThe State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
, enabling customers to have direct access to their accounts from Iran and the Arab countries.
Members
As of 2010, nearly all Iranian banks and some international banks in QatarQatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
, Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...
and Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...
are members of the Shetab System, as follows:
- Keshavarzi BankKeshavarzi BankKeshavarzi Bank, also known as Agribank, is a major Iranian banking establishment offering retail and commercial services. The company was established in 1933 and as a Farming and Industrial Bank...
- SaderatBank Saderat IranBank Saderat Iran is an Iranian Bank. Its name means "the Export Bank of Iran". Bank Saderat Iran was founded by the prominent Mofarrah and Bolurfrushan families, commenced operation on 13 November 1952 with a board of three directors and 20 employees...
- Bank Melli
- Export Development Bank
- MellatBank MellatBank Mellat is a Private Iranian bank. Its name means "Bank of the Nation". Bank Mellat was established in 1980, with a paid of capital of Rials 33.5bn as a merger of ten pre-revolution private banks comprising: Tehran, Dariush, Pars, Etebarat Taavoni & Tozie, Iran & Arab, Bein-al-melalie-Iran,...
- Bank of Industry and Mine
- Tejarat
- Toseye-Taavon Bank
- Sepah
- Sina BankSina BankSina Bank is a major Iranian banking establishment offering retail, commercial and investment banking services. The company was established in 1985 as apart of the government's privatization of the banking system....
- Industry and Mine
- Bank MaskanBank MaskanBank Maskan , also known as the Housing Bank, is a bank in Iran. In 2008, the Central Bank banned all banks and other financial institutions, except for Maskan Bank, from providing residential mortgages.-Structure:Their subsidiaries include:...
- Refah Bank
- Post Bank
- Saman Bank CorpSaman Bank Corp-History:Saman Bank Corp. is a 100 percent privately owned bank and is not listed in tehran stock exchange. This bank started its activities as Credit Institution in September 1999. Subsequently, in August 2002, it received a full banking license and changed its name to Saman Bank...
- Karafarin Bank
- Eghtesad Novin
- Parsian BankParsian BankParsian Bank is Iran's largest private bank, headquartered in Tehran, Iran. Founded in February, 2002 as a nongovernmental bank, Parsian Bank now has 174 branches across Iran, 104 of which are in Tehran. The bank entered the Tehran Stock Exchange in 2004...
- Pasargad BankPasargad BankPasargad Bank, also known as BPI, is a major Iranian banking establishment offering retail, commercial and investment banking services. The company was established in 2005 as a part of the government's privatization of the banking system....
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 internetInternet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
. The impact of the system is already being felt as corporations establish e-commerce, supply chains, online banking
Online banking
Online banking allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union or building society.-Features:...
and retailing systems.
In 2007, Tetra-Tech IT Company announced that using VISA
Visa
Visa or VISA may refer to:* Visa , a document issued by a country's government allowing the holder to enter or to leave that country...
and MasterCard
MasterCard
Mastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
is now possible for online sales and in Iranian e-card terminals at shopping malls, hotels, restaurants, and travel agencies for Iranians and foreign tourists.
Iran's electronic commerce
Electronic commerce
Electronic commerce, commonly known as e-commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online...
will reach 10,000 billion rials ($1 billion) by March 2009.
2010
Electronic Banking Usage increased Rapidly in Iran. In 2010 nearly every Bank branch in Iran had a Shetab system Connected ATM unit. The number of POS Units connected to the Shetab system increased so much that more than 70 percent of Stores , Restaurants , Markets and ... in Iran had at least one Unit. Internet banking has been on the rise too. In many Iranian Online Stores you can pay via Shetab system linked Debit and Credit cards. Internet , Telephone , Mobile and SMS Banking are some new services of Irans Shetab system.See also
- Iranian RialIranian rialThe rial is the currency of Iran. It is subdivided into 100 dinar but, because of the very low current value of the rial, no fraction of the rial is used in accounting....
- Communications in IranCommunications in IranIran’s telecommunications industry is almost entirely state-owned, dominated by the Telecommunication Company of Iran . Fixed-line penetration in 2004 was relatively well-developed by regional standards, standing at 22 lines per 100 people, higher than Egypt with 14 and Saudi Arabia with 15,...
- Economy of IranEconomy of IranThe economy of Iran is the eighteenth largest in the world by purchasing power parity and according to Iranian officials' claims is going to become the 12th largest by 2015. The economy of Iran is a mixed and transition economy with a large public sector and some 50% of the economy centrally planned...
- ATM usage feesATM usage feesATM usage fees are the fees that many banks and interbank networks charge for the use of their Automated Teller Machines . In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users...
- List of banks in Iran
- International rankings of Iran
External links
- Annual Reviews - Reports by the Central Bank of Iran, including Shetab and electronic banking statistics.
- Iran-Daily: Banking Reforms (Press article)