RBI issues certificates to 4 non-bank entities to set up WLAs
The Reserve Bank has issued ‘certificate of authorization’ to four non-bank entities, to set up White Lable ATMs (WLAs) in the country
Mumbai: The Reserve Bank today said it has issued ‘certificate of authorization’ to four non-bank entities, including Tata Communications Payment Solutions and Muthoot Finance, to set up White Lable ATMs (WLAs) in the country.
The other two non-bank entities to which the Reserve Bank has issued the certificate for setting up and operating White Label ATMs are Prizm Payment Services and Vakrangee Limited.
While Tata, Muthoot and Prizm have already launched their services, Vakrangee Limited is likely to commence its service shortly, the central bank said.
Most of the ATMs belong to banks, but the cash dispensing machines which are owned and operated by non-banking companies are called White Label ATMs.
In June 2012, the RBI issued policy guidelines permitting non-bank entities to set up and operate WLAs. Prior to this, only banks were permitted to set up and operate ATMs in the country.
The primary objective of permitting non-banks to operate WLAs, RBI said, was to enhance the spread of ATMs in semi-urban and rural areas (mainly in tier III to VI areas), where bank-owned ATM penetration was not growing.
Under the new guidelines, certain minimum number of WLAs need to be installed in these areas within a year as per the scheme opted by the respective operators.