RBI issues final norm for White Label ATMs

RBI issues final norm for White Label ATMs

The Reserve Bank of India (RBI) on Wednesday issued the final guidelines on “White Label Automated Teller Machines (ATMs) in India,” to be owned and operated by non-banking entities. At present only banks can set up ATMs.

New guidelines says prospective applicants would need to seek authorisation from the Reserve Bank under the Payment and Settlement Systems (PSS) Act, 2007. For setting up ATMs, entities should have a minimum net worth of Rs 100 crore as per the latest financial year’s audited balance sheet.

The authorisation can be sought under three schemes. One scheme envisages a minimum of 9,000 ATMs in a period of three years in a ratio of 3:1. Another scheme prescribes a minimum of 5,000 ATMs to be installed every year for three years in the ratio of 2:1, that is, for every two ATMS installed in Tier III to VI centres, one ATM can be installed in Tier I to II centres.

Third scheme says  a minimum of 25,000 WLAs in the first year and at least another 25,000 in the next two years in the ratio of 1:1.

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