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Private sector lender Federal Bank announced its tie-up with Tata Communications Payment Solutions Ltd as the sponsor bank to deploy White Label ATMs (WLAs).
The bank plans to install 15,000 ATMs in three years, by 5000 every year, the bank said.
TATA Communications Payment Solutions, a wholly-owned subsidiary of Tata Communications, has obtained an approval from RBI for setting up WLAs under Scheme B – 15,000 ATMs across India over a period of 3 years (5000 every year).
White Label ATMs are ATMs set up, owned and operated by non-bank entities incorporated in India under the Companies Act, 1956. Till now, only banks were permitted to set up ATMs as extended delivery channels. With the objective of expanding the reach of ATMs in Tier III to VI centres, RBI has created a scheme for permitting non-Bank entities incorporated in India under the Companies Act to set up, own and operate WLAs in India.
As a sponsor bank, Federal Bank will look after the cash operations and management, dispute resolution management and report to regulators.
Federal Bank has about 1,103 branches and over 1,200 ATMs across the country as on March 30, 2012.
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