New Delhi: The Reserve Bank of India (RBI) Wednesday released final guidelines pertaining to minimum net worth and roll out obligations for allowing independent non-banking firms to operate ATMs (automated teller machines), in a move to increase penetration of banking services in the country.
As per RBI's definition, such ATMs will be in the nature of white label ATMs (WLA) and would provide ATM services to customers of all banks.
"For setting up WLAs, entities should have a minimum net worth of Rs 100 crore (Rs 1 billion) as per the latest financial year's audited balance sheet," the central bank said in the guidelines for deployment of WLAs.
The authorization for setting up the WLAs can be sought under three schemes, it said.
Under Scheme A, a minimum of 1,000 WLAs have to be installed in the first year; a minimum of twice the number of WLAs installed in the first year to be installed in the second year; and a minimum of of three times the number of WLAs installed in the second year to be installed in the third year, the RBI said.
Under Scheme B, a minimum of 5,000 WLAs have to be installed every year for three years; and under Scheme C a minimum of 25,000 WLAs have to be installed in the first year and at least another 25,000 in the next two years, it added.
India has 87,000 ATMs at present.
The operator putting up the white label ATM is permitted to have more than one sponsor bank to manage cash, although the maintenance and servicing of the WLAs will be the sole responsibility of the operator, the RBI said.
The sponsor bank should be a member of the ATM Network Operators/Card Payment Network Operators authorized by the RBI and also be a member of the Real Time Gross Settlement (RTGS), it said.
Sponsor banks may collaborate with other banks for providing adequate cash at various WLAs at locations where it has no presence.
Notably, the authorized non-bank entity will have the freedom to choose the location of the WLA.
Non-bank entities intending to set up WLAs have to approach the RBI for seeking specific authorisation, within four months from the date of issuance of the guidelines.