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India considers looser regs on white label ATM investment

The motive behind the move is faster integration of India's unbanked millions into the nation's financial system, a report says.

July 27, 2015

The government of India is reportedly preparing to loosen its banking requirements to allow 100 percent foreign direct investment in white label ATM operations.

According to a report by Economic Times, the move is designed to build forward momentum toward the goal of greater financial inclusion for residents of India's smaller cities and towns.

The current guidelines set by the Reserve Bank of India for white label ATM deployments in India require that all nonbank entities operating white label ATMs be incorporated in India under the Companies Act of 1956. Foreign investment must then be channeled through these companies.

The guidelines also require that nonbank entities operating white label ATMs in India have a net worth of at least 1 billion rupees ($16 million).

Currently, 54 public, private and foreign banks operate more than 182,000 ATMs in the country.