Muthoot enters White-Label ATM space, to invest Rs 300 cr
Feb 04 2014 , New Delhi
The Reserve Bank has permitted non-banking companies to set up ATMs, referred to as WLAs, to increase the penetration of the facility across the country.
"We aim to set-up 9,000 WLAs in a 3-year period; 1,000 in the first year, 2,000 in the second year and additional 6,000 in the third year," Muthoot Finance Chairman M G George Muthoot said.
The company will invest Rs 300 crore in three years to set up 9,000 WLAs across the country, he said.
Muthoot plans to set up 100 ATMs in the next 3 months - 50 in south India and 50 in other parts of the country, he said.
It has partnered with FIS Payment Solutions Services and Federal Bank, the sponsor bank for this venture, he added.
Meanwhile, a company statement said that it intends to make the ATMs friendly for use by the "differently-abled persons" by having voice instructions, braille and access ramps wherever possible.
Every WLA operator is required to tie up with a sponsor bank, which takes care of cash operations, dispute resolution and regulatory reporting aspects.
In June 2012, the Reserve Bank had issued policy guidelines permitting non-banking entities to set up and operate WLAs after seeking authorisation under the Payment and Settlement Systems Act, 2007.
Last year, Muthoot Finance received in-principle authorisation from RBI to set up WLAs. In September, the company received Foreign Investment Promotion Board clearance for setting-up WLAs.