The Reserve Bank of India has decided to permit non-bank entities to set up,own and operate automated teller machines (ATMs).
Such non-bank entities should have a minimum net worth of Rs 100 crore as per the latest financial years audited balance sheet,which is to be maintained at all times.
Non-bank entities that intend setting up,owning and operating White Label ATMs (WLAs) would service customers of banks in India,based on the cards (debit/ credit/prepaid) issued by banks,the RBI said.
Non-bank entities will have to obtain authorisation from the RBI under the Payment and Settlement Systems Act 2007 within four months from the date of issuance of these guidelines,beyond which the authorisation seeking window will be closed. The authorisation can be sought under three schemes.
Under Scheme A,a minimum of 9,000 WLAs in a period of three years in a ratio of 3:1 that is,minimum of 1,000 WLAs to be installed in first year,twice of that to be installed in the second year,and thrice to be installed in the third year.
Under Scheme B,a minimum of 5,000 WLAs to be installed every year for three years in the ratio of 2:1,with a stipulated minimum in smaller cities. Under Scheme C,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 with stipulations for smaller cities.
Taking over of ATMs operated by banks would not be permitted. The sponsor bank would be responsible for the cash at the ATMs.