With a view to increase financial inclusion, the Reserve Bank of India has authorized three non-banking financial companies (NBFCs) for setting up white label ATMs (WLAs).
The apex bank announced the names of the three NBFCs that have received certificates of authorization through a statement on May 28. These NBFCs are BTI Payments Pvt Ltd, Srei Infrastructure Finance Ltd and RiddiSiddhi Bullions Ltd.
Under the White Label ATM arrangement, the ATMs belong to banks, but the cash dispensing machines, which are owned and operated by NBFCs, are called White Label ATMs.
Permission to the said NBFCs for setting up WLAs is in addition to the four entities already authorised to operate as WLAs, namely Tata Communications Payment Solutions, Prizm Payment Services Pvt Ltd, Muthoot Finance Limited and Vakrangee Ltd.
“The primary objective of permitting non-banks to operate White Label ATMs is to enhance the spread of ATMs in semi-urban and rural areas (mainly in tier III to VI areas), where bank-owned ATM penetration is not growing,” said RBI in its statement.
Under the new guidelines, certain minimum number of WLAs need to be installed in these areas within a year as per the scheme opted for by the respective operators.
In June 2012, the apex bank had issued policy guidelines permitting non-bank entities to set up and operate white label ATMs. Prior to this, only banks were permitted to set up and operate ATMs in the country.
