Non-bank financial service companies are now allowed to set up
and operate ATMs and white-label ATMs (WLAs) in India.
The Reserve Bank of India has confirmed the
permission on 21 June and said opening the market up to non-bank
entities would speed up the distribution of delivery channels other
than the branch.
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These non-bank ATM operators will not be
subjected to any fees by banks, apart from interchange fees.
The permission by the Reserve Bank of India
consists of three schemes, or streams, that non-bank ATM and WLA
providers can choose.
The first scheme allows and requires, among
other things, the provider to install 9,000 WLAs in three years,
with 1,000 units required to be set up and operated within the
first year of operation.
The second scheme stream demands that 5,000
ATM/WLA units be set up per year for three consecutive years; and
under the third scheme, the Reserve Bank of India is asking
providers to install 25,000 WLAs and another 25,000 again in the
next two years.
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By GlobalDataHowever, the Reserve Bank of India is not
permitting the non-bank ATM operators to accept deposits.
These type of ATMs will initially only accept
domestic cards – but will offer the same transaction features as
regular, bank-operated ATMs, such as five free transactions per
month.
