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India may ease foreign investment rules for ATM, cash management firms

April 17, 2017

India might be on the verge of changing its foreign direct investment policy for the ATM industry in order to encourage the inflow of monetary resources into cash management and ATM management companies.

According to a report by Economic Times, India's home ministry will be issuing clarification of the new policy soon. Currently FDI is limited to 49 percent of backing.

White label ATM deployers have been able to accept 100 percent FDI since 2015, but confusion has persisted among ATM and cash management companies and equipment suppliers, the Times report said.

"[C]ompanies managing cash for banks have so far been caught in a policy tangle, with the home ministry insisting that 100 percent FDI could not be allowed for them if they provide private security guards or armored vehicles," stated the Times report.

Companies that make currency authentication and sorting devices might also benefit from the expected clarification.