Union Cabinet has allowed 100% Foreign Direct Investment (FDI) in White Label ATM operations. This decision was taken by Prime Minister Narendra Modi in the Union Cabinet meeting to promote financial inclusion in the country. It would help to increase the number of ATMs in semi-urban as well as in rural areas. Currently more than 1.82 lakhs ATMs operated in the country by 54 banks which includes public, private as well as foreign banks.
Info about White Label ATMs
- White labeled ATMs are set up by private non-bank entity and operate their own.
- White Label ATM does not have any Bank logo, So that it is called by White Label ATMs.
- Any non-bank company can apply for white label ATMs and should have a minimum net worth of Rs100 crore. The minimum net worth has to be maintained at all times.
- Non banking entities permitted to set up WLAs under the Payment and Settlement Systems (PSS) Act 2007
- WLA operator is entitled to receive a fee from the banks for the use of ATM resources by its customers, while White Label ATMs are not permitted to charge bank customer directly for the usage
- Five free transactions allowed to the customers.
- The sponsor bank provides cash to prevent fake currency circulation while WLA operators are responsible for maintenance and servicing of the machine.
- First Company got approval to open White Label ATMs – Tata Communications Payment Solutions Limited(Indi Cash)
- India’s first White Label ATM “Indicash” at Chandrapada inThane, Maharashtra.
- Other WLAs in the country includes
- Muthoot Finance Ltd.,
- SREI Infrastructure Finance
- Vakrangee Ltd.,
- Prizm Payments Services