Tata Communications Payment Solutions Ltd (TCPSL) is in talks with at least six banks, including two large public sector lenders, for fee-based cash supplies to its Indicash-branded white label ATMs.
White-label ATMs are those operated by a non-banking entity. TCPSL currently has only one such tie-up, with Federal Bank.
“Federal Bank is our only sponsor bank now. We are also in talks with half a dozen banks, including two major PSU banks. Discussions with the banks are in different stages,” Sanjeev Patel, CEO, told reporters here.
A wholly-owned subsidiary of Tata Communications Ltd, the company has so far opened 400 such ATMs across eight states and is planning to add 14,600 more by 2016.
Asked about investments, Patel said each of these ATMs would entail an investment of nearly Rs 5 lakh.
Apart from its Indicash machines, the company manages 27,000 bank ATMs as well.
Meanwhile, the company has decided to offer value-added services (VAS) such as bill payments and sale of insurance products through these ATMs from December this year.
“We are in talks with several companies, including insurance firms, for introducing value-added services,” Patel said.
According to him, the company would need at least 1,000 ATMs before it could start working on introducing VAS. “By December, we would have 1,500 ATMs and hence introducing value-added services would not be a problem.”
West Bengal
The company plans to have 150 white label ATMs in West Bengal by the end of this year, Patel said.
So far, it has opened 16 such money machines in the state. ayan.