India-based Muthoot Finance is reportedly planning to install up to 100 white-label ATMs throughout the country during the current quarter of 2014.
The finance company, which inaugurated its first ATM in Chennai recently, said that it has teamed up with FIS Payment Solutions and Services India, which will serve as technical partner for the project. Federal Bank will serve as the sponsor bank.
Muthoot Group director George M Jacob was quoted by PTI as saying, "With this launch, we have gone an extra mile by challenging ourselves to set up 9,000 WLAs (white-label ATMs) within three years with our aim to launch 100 ATMs in this quarter."
Similar to a normal bank ATM, a white-label ATM offers services such as cash withdrawal and balance enquiry; however, they are owned and managed by non-banking companies.
The Reserve Bank of India (RBI) has granted permission to four non-bank organizations to set up white label ATMs in India.
The four companies include Tata Communications Payment Solutions Ltd, Prizm Payment Services, Muthoot Finance and Vakrangee.
Muthoot Finance statement was cited by PTI as saying, "Being the industry leader, Muthoot Finance will drive on its existing strength, including a strong presence in under-served rural and semi-urban markes for setting up WLAs (White Label ATMs) in various geographical locations."