Non-banking entities may open 80,000 ATMs in next eight months
Moneylife Digital Team 25 June 2012

The Finance Ministry expects around 60,000-80,000 white-label ATMs to roll out in the next six to eight months

 

New Delhi: Non-banking entities, which have been allowed by RBI to operate ATMs on behalf of banks, are expected to open 60,000-80,000 automated teller machines in the next eight months, reports PTI.

“We expect 60,000-80,000 white-label ATMs to roll out in the next six to eight months,” a Finance Ministry official said.

This will help in spreading financial inclusion in unbanked areas, the official said.

At present, there are about 90,000 ATMs spread across the country. Of this, nearly one-third are owned by SBI Group.

So far, only banks are allowed to set up and operate ATMs in the country.

Recently, RBI permitted non-banking entities with a minimum net worth of Rs100 crore to set up, own and operate ATMs on behalf of banks.

The RBI in a notification said the automated teller machines (ATMs) operated by non-banking entities will be known as 'White Label ATMs' (WLAs).

Each of these new ATM operators will have a bank sponsoring them, RBI had said.

All services offered by regular ATMs will be available at white label dispensers as well with existing debit or credit cards issued by banks. Customers of all banks can use the new ATM network.

Non-bank entities intending to set up WLAs under these guidelines may approach RBI for seeking specific authorisation within four months from the date of issuance of these guidelines, RBI had said.

Although there has been nearly 23%-25% annual growth in the number of ATMs, their deployment has been predominantly in tier I and II cities.

In spite of the banks' pioneering efforts in this direction, much needs to be done, it said, adding, there is a need to expand the reach of ATMs in Tier III to VI cities.

The RBI final guidelines had said non-bank entities proposing to set up WLAs have to apply to RBI for seeking authorisation under the Payment and Settlement Systems Act, 2007.

Five free transactions in a month as applicable to bank customers for using other bank ATMs would be inclusive of the transactions effected at the WLAs, it had said.

Comments
bhaskar
1 decade ago
The existing ATMs are a nuisance. they go dry/capture the ATM cards/money is not dispensed but debited to account/fake currencies are dispensed sometimes These ATMs are directly under the nose of the bankers and even when there are explicit guidelines by RBI customer still has to run from pillar to post to address grievances. What is the use of WLA if they cannot handle exiting issues
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