Srei Infrastructure is planning to set up 100 third-party ATMs (also called white label ATMs) across rural areas at an estimated cost of over Rs 5 crore. To be run on a pilot basis, roll-out of these ATMs is likely to begin by the end of this fiscal.
Most automated teller machines or machines dispensing cash are owned by the banks. Ones that are owned and operated by non-banking financial companies are called white label ATMs. They function in a manner similar to bank-run ATMs.
According to Hemant Kanoria, SREI Chairman and Managing Director, clearances for setting up the teller machines have already been obtained from the Reserve Bank of India. In-principle clearances were obtained from the apex bank in December last year.
"Even if we do not receive the banking licences, we can go ahead with our ATM roll-out. Around 100-odd teller machines will be set up on a pilot basis by the end of this fiscal," Kanoria told
Srei is one of the 26 applicants for new banking licences.
The cost of setting up one ATM will be between Rs 5 lakh and Rs 8 lakh.
According to Kanoria, Srei has clearances for setting up nearly 9,000-odd ATMs. “Based on the success of our pilot project, we would look to begin commercial roll-out,” he said, adding that ATMs would be under the 'Srei' brand.