News

India's Muthoot Finance OK'd for ambitious ATM deployment plan

May 23, 2014

New Delhi-based Muthoot Finance Ltd, India’s largest gold financing company, has been given the green light by the Foreign Investment Promotion Board to establish white label ATMs in the country.

Muthoot Finance received authorization from the Reserve Bank of India for 9,000 placements over three years — 1,000 in year one, 2,000 in year two, and 6000 in year three. The company is in the process of outsourcing banks and technical partners for setting up WLAs, a news release said.

K.R Bijimon, chief general manager of Muthoot Finance, said that the company plans to set up its first ATM in India’s southern region by next month.

“We have taken a strategic decision to establish 65 percent of these WLAs in semi-urban and rural areas,” he said. “We are sure this decision will aid in the sustainable and inclusive growth of the nation and economy.”

Bijomon said that Muthoot Finance will leverage its existing strong presence as a gold loan business to achieve an ambitious ATM deployment plan in underserved and semi-rural areas.

"We have plans to roll out different models of ATMs such as standalone ATMs, through the wall ATMs, drive-in ATMs, mini-ATMs and moving ATMs to name a few … Our ATMs will be strategically placed at locations where the public would wish for one. Cards issued by all banks in India will be accepted at our ATMs. These ATMs will be user-friendlyWLAs; even for the ‘differentlyabled’people — in terms of voice, Braille and wherever feasible, access facilities by ramp also."

Muthoot Finance provides personal loans secured by gold jewelry, primarily to individuals who cannot access formal credit within a reasonable period of time — or at all.