The Reserve Bank of India has issued certificate of authorisation to three non-banking finance companies, including private equity-backed payments services provider BTI Payments Limited, to set up white label ATMs in the country, according to a statement.
Infrastructure finance firm Srei Infrastructure Finance Ltd and RiddiSiddhi Bullions Ltd are the other two firms that have been allowed to set up and operate white label ATMs.
“The primary objective of permitting non-banks to operate WLAs was to enhance the spread of ATMs in semi-urban and rural areas, mainly tier III to VI areas, where bank-owned ATM penetration was not growing,” RBI said in a statement.
Previously, the central bank had allowed four companies namely Tata Communications Payment Solutions, Prizm Payment Services Pvt Ltd, Muthoot Finance Ltd and Vakrangee Ltd to set up and operate while label ATMs.
Tata Communications Payment, a subsidiary of Tata Communications, launched white label ATMs under the brand name Indicash in June 2013, Prizm Payment—now part of Japanese firm Hitachi— launched its services in January this year as ‘Money Spot ATM’, while Muthoot Finance launched its first white label ATM in New Delhi in February.
Vakrangee, an IT firm which provides e-governance solutions, is yet to commence its service.
The cash dispensing machines that are owned and operated by non-banking companies are called white label ATMs. Presently, almost all ATMs in the country are operated by banks.
Earlier in 2012, the central bank issued guidelines allowing non-banking companies to open and operate white label ATMs, in order to augment the spread of ATMs in semi-urban and rural areas where bank are unable to strengthen their infrastructure to roll out ATMs.
Under the new guidelines, certain minimum number of white label ATMs need to be installed in these areas within a year as per the scheme opted by the respective operators.
(Edited by Joby Puthuparampil Johnson)