The banks and NTT Data Corp, which manages ATM data for Japanese banks, are also planning to expand the scheme to other Asian economies, the sources said.
The move is aimed at extending improved financial services to visitors from Asia, as well as Japanese visitors to the region, especially in the run-up to the Tokyo Olympic Games in 2020.
Integration of the ATM systems would allow foreign visitors to withdraw Japanese yen using cash cards issued by foreign banks, a transaction that will be cheaper than cash withdrawals using credit cards.
Similarly, Japanese nationals traveling in other Asian economies would be able to withdraw local currencies using cash cards issued in Japan.
NTT Data Corp plans to join a network of financial institutions in Asia and Oceania and sign the envisaged ATM integration deal with South Korean and Thai operators in fiscal 2014, which will start April 1.