The RBI on Monday authorised Srei Infrastructure Finance among three non-banking financial companies to set up White Label ATMs (WLAs) in the country.
WLAs are ATMs that are owned and operated by non-banking entities. Most of the ATMs in India are owned and operated by banks.
Bangalore-based BTI Payments Private Ltd and Mumbai-based RiddiSiddhi Bullions Ltd are the two other entities to be authorised to operate such ATMs.
This is in addition to the four entities already authorised to operate WLAs, namely Tata Communications Payment Solutions Ltd, Mumbai, Prizm Payment Services Pvt Ltd, Mumbai, Muthoot Finance Ltd, Kochi and Vakrangee Ltd, Mumbai.
In June 2012 the RBI had issued policy guidelines permitting non-bank entities to set up and operate WLAs in the country after seeking authorisation under the Payment and Settlement Systems Act, 2007. Till then only banks were permitted to set up and operate ATMs in India.
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. Under the new guidelines, a certain minimum number of WLAs need to be installed in these areas in three years under the scheme opted for by the respective operator.