Non-banking finance companies keen on entering white-label ATM business are making a beeline for the foreign investment promotion board (FIPB) for the latter’s approval.
Muthoot Finance, SREI Infrastructure Finance, Microsec Financial Services and Euronet Services India are among the companies that had approached the FIPB for its nod to to set up white-label ATMs. As these companies have a foreign direct investment /foreign institutional investor component in them, FIPB approval is required for this business activity.
This is because white-label ATM business does not fall under any of the 18 listed activities slotted under automatic route for NBFCs, say policy experts.
Almost all the companies that had approached FIPB have got their approval, it is learnt. The FIPB approval is subject to authorisation from the RBI under the Payment and Settlement System Act 2007 and the entity having a minimum net worth of Rs 100 crore.
Earlier this month, Muthoot Finance had got FIPB approval for setting up white-label ATMs.
The company has already received in-principle authorisation from the RBI for roll out of 9,000 white-label ATMs in three years.