The Reserve Bank of India (RBI) has permitted four non-bank entities to set up white label ATMs in India.
The RBI has issued Certificate of Authorisation to Tata Communications Payment Solutions Ltd., Prizm Payment Services Pvt. Ltd., Muthoot Finance Ltd., and Vakrangee Ltd. for setting up and operating white label ATMs.
Of these, three have already launched their services. Vakrangee is likely to commence its service shortly.
In June 2012, the RBI issued policy guidelines permitting non-bank entities to set up and operate white label ATMs in the country after seeking the Reserve Bank’s authorisation under the Payment and Settlement Systems Act, 2007.
Hitherto, only banks were permitted to set up and operate ATMs in India. The objective of permitting non-banks to operate white label ATMs was to enhance the spread of ATMs in semi-urban and rural areas,where bank-owned ATM penetration has not been growing.
“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,” said a release from the RBI.