The Tata group company, Tata Communications Payment Solution, has got RBI clearance to install 15,000 ATMs in the next three years, two-third of which will be in smaller towns.
The company will roll out three machines in the rural belt and 17 in semi-urban districts for every 10 machines installed in bigger cities, in line with the country’s financial inclusion agenda. The group has installed 400 machines so far.
The company is the first one to launch white-label ATM network in India; others like Muthoot Finance, SREI Infrastructure Finance, Prizm Payments and AGS Transact are among the 12 that have got in-principle approval from the banking regulator to install ATMs.
“ATM density is low in India and there’s enough space for everyone to do business,” Tata Communications Payment CEO, Sanjeev Patel said, after announcing the ATM roll-out plan in Bengal. “We have chosen West Bengal reasonably early in our strategy. Low ATM density in northern parts of West Bengal makes it an attractive region,” he said.
In the first year of deployment, the wholly-owned Tata Communication subsidiary will focus on seven states – Maharashtra, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, and Uttar Pradesh, Patel said. India is an under-penetrated ATM market with only 98 ATMs for every 10 lakh of population. ATM density in China is 211; in the UK, it is 530; and in the USA, it is 1,390. White-label ATMs account for nearly 50% of ATMs in the US and 70 percent in Canada.
Within India, Chandigarh has the highest ATM density with 400 machines for every 10 lakh people, while the density is 180 in Tamil Nadu, 141 in Maharashtra and 71 in West Bengal. Maharashtra, with 15,000 ATMs, has the highest number of ATMs; West Bengal ranks eighth with 6,500 ATMs.
|Get a chance to meet who's who of Transport ecosystem in India including key policymakers from Central and State Governments. Join us at National Summit on ‘Strategy for Ports, Highways Infrastructure and Logistics Efficiency , New Delhi on Aug 13, 2018 to explore business opportunities. Like and connect with us on Facebook, Linkedin and Twitter.|