News

India's white label initiative off to a slow start

August 26, 2013

"Make haste slowly," seems to be the theme of India's initiative to bring ATM-based financial services to the country's millions of rural unbanked citizens. Of 13 IADs that have received in-principal approval from the Reserve Bank of India to install white label ATMs throughout the country, only one — Tata Communications — has actually commenced operations.

Tata Communications got its ATM rollout underway in June and aims to place 50,000 ATMs by 2016. "The rest have to still get their act together," said a report by Indian publication DNA.

Delays relate to issues such as IT readiness, clearances, financial data submission and even raising operating equity. There is also the issue of the one-year term for operating licenses, which deployers insist should be raised to five years in order to allow long term planning and attract equity investment. 

And, one RBI official told DNA, "Maybe, they are waiting to see whether Tatas white-label business makes money and then start their operations." 

Read more about installation and deployment.