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Kolkata-based Srei Infrastructure Finance Ltd is likely to roll out some 200 white-label ATMs in rural areas over the next three-six months on a pilot basis.
According to J Moses Harding, Group CEO, Liability and Treasury Management, Srei Infrastructure Finance, the company has now been authorised by the Reserve Bank of India to “set up, own and operate white-label ATMs” with effect from March 25. Axis Bank will be the sponsor bank for Srei.
White-label or third-party ATMs are owned and operated by non-bank entities and, hence, do not carry the label of any particular bank.
These ATMs can be accessed by the card-holders of all the banks and the operator is allowed to charge customers according to bank charges.
While the company is yet to take a call on branding, it has decided to leverage on its “Sahaj” common service centre network for rollout.
According to Moses, leveraging its Sahaj network will help Srei cut back on costs relating to space.
Srei, primarily into infrastructure and equipment financing, is one of the applicants for new bank licences.
The SREI stock closed at ₹28.40, up 0.35 per cent on the BSE on Thursday.
Correction:
Srei clarifies that as per RBI guidelines, this is a product where clients/users cannot be charged at the time of usage. It is just a cash dispensation. The WLA operator has no access to the bank account of the user for recovery of charges.
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