RBI authorises four non-bank entities to set up White Label ATMs
Updated: Feb 07, 2014 02:13:08pm
Mumbai, Feb 7 (KNN) With the view to deploy more ATMs in the semi-urban and rural areas of the country, the Reserve Bank of India (RBI) has issued 'certificate of authorisation' for setting up White Label ATMs (WLAs) in the country to four non-bank entities.
The certificate has been issued to four non-bank entities namely Tata Communications Payment Solutions Limited, Mumbai; Prizm Payment Services Private Limited, Mumbai; Muthoot Finance Limited, Kochi; and Vakrangee Limited, Mumbai.
While Tata, Muthoot and Prizm have already launched their services, Vakrangee Limited is likely to commence its service shortly, RBI said.
White label ATMs are owned and operated by non-banking companies and do not display any bank’s branding / signage and hence they are called White Label ATMs; they serve all banks’ customers and will be interconnected with the entire ATM network in the country.
Customers from any bank can transact on such White Label ATM’s which is comparable to non-home bank ATMs.
In June 2012, the RBI issued policy guidelines permitting non-bank entities to set up and operate WLAs. Prior to this, only banks were permitted to set up and operate ATMs in the country.
The primary objective of permitting non-banks to operate WLAs, RBI said, was to enhance the spread of ATMs in semi-urban and rural areas (mainly in tier III to VI areas), where bank-owned ATM penetration was not growing.
Under the new guidelines, certain minimum number of WLAs need to be installed in these areas within a year as per the scheme opted by the respective operators. (KNN/SD)
The certificate has been issued to four non-bank entities namely Tata Communications Payment Solutions Limited, Mumbai; Prizm Payment Services Private Limited, Mumbai; Muthoot Finance Limited, Kochi; and Vakrangee Limited, Mumbai.
While Tata, Muthoot and Prizm have already launched their services, Vakrangee Limited is likely to commence its service shortly, RBI said.
White label ATMs are owned and operated by non-banking companies and do not display any bank’s branding / signage and hence they are called White Label ATMs; they serve all banks’ customers and will be interconnected with the entire ATM network in the country.
Customers from any bank can transact on such White Label ATM’s which is comparable to non-home bank ATMs.
In June 2012, the RBI issued policy guidelines permitting non-bank entities to set up and operate WLAs. Prior to this, only banks were permitted to set up and operate ATMs in the country.
The primary objective of permitting non-banks to operate WLAs, RBI said, was to enhance the spread of ATMs in semi-urban and rural areas (mainly in tier III to VI areas), where bank-owned ATM penetration was not growing.
Under the new guidelines, certain minimum number of WLAs need to be installed in these areas within a year as per the scheme opted by the respective operators. (KNN/SD)
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