It is now official, Reserve Bank of India, vide press release today has granted authorisation under the Payment and Settlement Systems Act, 2007 – Tata Communications Payment Solutions Limited, Mumbai.
The Certificate of Authorisaton issued to Tata Communications Payment Solutions Limited, Mumbai; a subsidiary of Tata Communications Limited, is for for setting up and operating White Label ATMs (WLAs) in India.
Readers might remember that in June 2012, the Reserve Bank of India had issued policy guidelines permitting non-bank entities to set up and operate WLAs in the country after seeking Authorisation under the Payment and Settlement Systems Act, 2007.
Hitherto, only banks were permitted to set up and operate ATMs in India. The primary objective of permitting non-banks to operate WLAs was to enhance the spread of ATMs in semi-urban and rural areas (mainly tier III to VI cities/towns), where bank owned ATM penetration was not growing.
Under the new guidelines, certain minimum number of WLAs need to be installed in these areas within a year as per the Scheme opted.
Tata Communications Payment Solutions is already one of the largest ATM outsourcing services providers in India. In the near future, once the WLAs take off, Tata will introduce a wide variety of value added services at its WLAs.
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