The Union Cabinet has approved the proposal to allow 100 per cent foreign direct investment (FDI) in white labelled automated teller machines (ATM) through the automatic route.
The decision is likely to result in faster growth of the white labelled ATMs--set up by private non-banking entities—as flow of foreign funds will now get expedited.
“The Cabinet approved 100 per cent FDI in white labelled ATMs through the automatic route (instead of through government approval route),” Finance Minister Arun Jaitley said at a press briefing following the Cabinet meeting on Wednesday.
The government’s decision is primarily aimed at improving financial inclusion as such ATMs are also set up in smaller towns and cities.
The Cabinet, however, did not take up the long-pending proposal for allowing foreign and domestic companies with manufacturing units in India to sell their products on-line through e-commerce platforms directly to consumers.
“No, the issue was not taken up. You have to ask the Department of Industrial Policy & Promotion about it,” Jaitley said, when asked why there was no movement on the issue despite the FM announcing it in his budget last July.