Axis Bank has signed a first-of-its-kind agreement with Kochi Metro Rail (KMRL) for implementing the latter's Automatic Fare collection System (AFC) with a debit card, after winning an international competitive bid.The bank will issue co-branded debit cards to the users of the Kochi Metro system, which will double up as a metro ticket.

The Mumbai-based bank has agreed to pay a royalty of Rs 209 crore to KMRL over the next 10 years for the right, apart from investing the entire funds required for the AFC infrastructure across its stations, including phase-ll. Moreover, the entire maintenance of the AFC system for 10 years will also be undertaken by the bank.

In addition to this, 20% of Axis Bank's gross revenues, from the utilisation of this debit card outside KMRL's ecosystem in various mercantile outlets and internet transactions, will also accrue to KMRL over the next 10 years.KMRL claimed that it is the first time such an innovative model is being launched anywhere in the world. This business model is expected to change funding models for AFC systems in the metro industry globally.

KMRL, which is looking at expanding its services to water transport in the city, under the proposed Unified Metropolitan Transport Authority, will offer the smart card system in ferry services as well.

"This model of external investment in critical components of the metro system is a `win-win' proposition for all the three stakeholders -- the public, the metro administration as well as the bank", said Elias George, managing director, KMRL.

Axis Bank will have a unique opportunity to populate their card in the metro ecosystem and in Kochi city, with a net addition of new clientele.