In line with the recent Reserve Bank of India directives,as many as 12 non-banking financial companies will set up what is known as white label ATMs across the country. As the name suggests,these ATMs would be accessed using cards of any banks for normal transactions free-of -cost for a limited time.
Tata Communicaiton Payment Solutions Limited (TCPSL),one of the 12 companies given the license by the RBI to open such ATMs, opened second white label ATM in the city on Tuesday.
The company plans to open 50 such ATM kiosks in the state and 200 in the country by the end of this fiscal.
Addressing the media,Sanjeev Patel,CEO,TCPSL,said studies have found that the ATM penetration in the country is significantly low,with only 98 ATMs per million.
This is in sharp contrast to 1,390 ATMs per million in the USA and 211 ATMs per million in China. The non-bank entities are being encouraged to set up ATMs in towns,villages and tier 2 and 3 cities, he said.
Patel said though TCPSL has been managing ATMs of different banks since the past many years,this would be the first time the company would be running ATMs under its own logo.
Talking about the revenue model,Patel said the banks concerned would give TCPSL Rs 15 per cash transaction and Rs 5 for other transactions. The first five transactions would be free for customers. Thereafter,a token fee would be charged by banks for transactions, he said.
The company plans to open ATMs in Ambegaon,Hinjewadi,Paud and other rural areas of the district. According to Patel,the first such ATM opened by the company in Thane district has had more than 200 transaction in the past one month.
Once the model picks up,we will add value added services in ATMs, he said.