Central government approval will not be required now for foreign direct investment (FDI) in ATMs, set up by non-banking
entities.
Last year RBI had allowed usage of international credit, debit and prepaid cards in these ATMs in a bid to make it a viable project. However, it was still felt that this was not sufficient to push the rollout of ATMs from the slow lane.
Advantages of the move:
The move would boost financial inclusion programme of the government and facilitate funding of infrastructure in this business.
It is aimed at increasing financial inclusion since such ATMs, called white label, are generally set up in smaller cities, towns and rural areas.
White label ATMs:
Traditionally, Automated Teller Machines (ATMs) have respective bank’s logo. So just by looking, this is SBI’s ATM, this is ICICI’s ATM and so on.
But White label ATM doesn’t have such Bank logo, hence called White label ATMs.
RBI has given license / permission to non-bank entities to open such ATMs.
Any nonbank entity with a minimum net worth of Rs.100 crore, can apply for white label ATMs.
The authorised non-bank entity would have the freedom to choose the location of the WLA.
The WLA Operator would not be entitled to any fee from the card issuerbank other than the “Interchange” fee payable to “acquirer” bank under the bank owned ATM scenario.
Some WLA operators in India:
Whitelabel ATM operators in the country include Srei Infrastructure Finance Ltd, Muthoot Finance and Vakrangee Software.
entities.
Last year RBI had allowed usage of international credit, debit and prepaid cards in these ATMs in a bid to make it a viable project. However, it was still felt that this was not sufficient to push the rollout of ATMs from the slow lane.
Advantages of the move:
The move would boost financial inclusion programme of the government and facilitate funding of infrastructure in this business.
It is aimed at increasing financial inclusion since such ATMs, called white label, are generally set up in smaller cities, towns and rural areas.
White label ATMs:
Traditionally, Automated Teller Machines (ATMs) have respective bank’s logo. So just by looking, this is SBI’s ATM, this is ICICI’s ATM and so on.
But White label ATM doesn’t have such Bank logo, hence called White label ATMs.
RBI has given license / permission to non-bank entities to open such ATMs.
Any nonbank entity with a minimum net worth of Rs.100 crore, can apply for white label ATMs.
The authorised non-bank entity would have the freedom to choose the location of the WLA.
The WLA Operator would not be entitled to any fee from the card issuerbank other than the “Interchange” fee payable to “acquirer” bank under the bank owned ATM scenario.
Some WLA operators in India:
Whitelabel ATM operators in the country include Srei Infrastructure Finance Ltd, Muthoot Finance and Vakrangee Software.
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