News

RBI gives nod to four white label ATM providers

February 11, 2014

The Reserve Bank of India has announced the issuance of "certificates of authorization" to four non-bank ATM providers. The certificates grant IADs permission to deploy and operate white label ATMs in the country.

According to The Business Standard, the newly authorized companies include Muthoot Finance, Prizm Payment Services, Tata Communications Payment Solutions and Vakrangee Ltd. The first three have launched their services; Vakrangee expects to launch shortly.

The authorizations stem from a June 2012 policy change by the RBI that opened the Indian market to white label ATM companies operating under the auspices of one of the country's FIs. Previously, only banks were allowed to own and operate ATMs.

The white label policy is part of the central bank's goal to speed up the process of bringing India's unbanked millions — and their cash — into the formal banking sector. Many of the country's unbanked and underbanked live in rural areas that are not served by bank branches.

Contracts issued by RBI allow deployers to install a given number of ATMs in designated areas on a set schedule over several years.

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