<p>The RBI has now decided to allow non-bank entities - under the Companies Act 1956 - to set up, own and operate ATMs in India, which would be called “White Label ATMs” (WLAs).<br /><br /></p>.<p>Such non-bank entities should 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, RBI said. In effect, non-bank entities will provide the banking services to bank customers in India, based on the cards (debit/credit or prepaid) issued by banks. Their role would be confined to acquisition of transactions of all banks’ customers and so they would need to establish technical connectivity with the existing authorised shared ATM Network Operators or Card Payment Network Operators, said an RBI release.<br /><br />For this, non-bank entities would have to obtain authorisation from RBI under the Payment and Settlement Systems (PSS) Act 2007. Non-bank entities intending to set up WLAs under these guidelines may approach RBI for seeking specific authorisation, within four months from the date of issuance of these guidelines.</p>
<p>The RBI has now decided to allow non-bank entities - under the Companies Act 1956 - to set up, own and operate ATMs in India, which would be called “White Label ATMs” (WLAs).<br /><br /></p>.<p>Such non-bank entities should 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, RBI said. In effect, non-bank entities will provide the banking services to bank customers in India, based on the cards (debit/credit or prepaid) issued by banks. Their role would be confined to acquisition of transactions of all banks’ customers and so they would need to establish technical connectivity with the existing authorised shared ATM Network Operators or Card Payment Network Operators, said an RBI release.<br /><br />For this, non-bank entities would have to obtain authorisation from RBI under the Payment and Settlement Systems (PSS) Act 2007. Non-bank entities intending to set up WLAs under these guidelines may approach RBI for seeking specific authorisation, within four months from the date of issuance of these guidelines.</p>
