MUMBAI, May 4: The Reserve Bank of India (RBI) has allowed Tata Communications Payment Solutions, a subsidiary of Tata Communications, to set up and operate White Lable ATMs in the country.
“Tata Communications Payment Solutions, Mumbai, a subsidiary of Tata Communications, has been issued Certificate of Authorisation by the Reserve Bank for setting up and operating White Label ATMs
(WLAs) in India,” RBI said in a notification.
Non-bank entities are allowed to set up, own and operate ATMs (Automated Teller Machines) in the country and they are known as White Label ATM Operators (WLAOs). ATMs run by them are called White Label ATMs (WLAs).
RBI in February 2012 permitted the non-banking entities to operate and own ATMs with the objective of enhancing the spread of
ATMs in semi-urban and rural areas where bank owned ATM penetration was not growing.
As per the rules, WLAOs are required to install certain minimum
number of WLAs in these areas within a year as per the scheme opted by them.
The non-banking entities have to obtain authorisation certificate from the RBI under the Payment and Settlement Systems (PSS) Act to start a WLA. The authorisation for setting up a WLA operation is valid for one year period initially.
Also, the WLAOs are required to have a minimum net worth of Rs 100 crore as per the latest financial year’s audited balance sheet,which is to be maintained at all times.
However, they are given the freedom to choose the location to set up a WLA, it added.
(UNI)
Trending Now
E-Paper
Follow our WhatsApp channel