India’s central bank has authorised four non-banking entities to set up white label ATMs in an effort to extend the country’s ATM network.
The Reserve Bank of India authorised Tata Communications Payment Solutions, Muthoot Finance, Prizm Payment Services and Vakrangee Limited to set up ATMs.
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The central bank, which has allowed non-banking entities to operate ATMs since June 2012, said: "The primary objective of permitting non-banks to operate white label ATMs was to enhance the spread of ATMs in semi-urban and rural areas, where bank-owned ATM penetration was not growing."
Vakrangee has yet to launch its ATM network, whereas Tata, Muthoot and Prizm have already started.
Tata’s ATMs, Indicash, allow five free transactions per month and all four providers say their ATMs accept cards from any Indian bank.
The announcement comes less than a month after State Bank of India confessed it was losing money on its ATM network.
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By GlobalDataThe bank, with nearly 32,800 ATMs across the country as of September 2013, said it was considering charging for ATM transactions in a bid to cut losses.
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