Corporates can set up ATMs on rent for banks

EXPANDING THE NETWORK

Mumbai: Corporate entities have been allowed to set up 'white label' automated teller machines (ATMs) under new norms issued by the Reserve Bank to grow the ATM network in the country. However, there is a stiff entry barrier of Rs 100 crore networth and high investment targets, ranging from 9,000 to 25,000 machines, over a threeyear period. 
    White label ATMs refer to the machines which are owned by private operators seeking to earn a rent from banks for transactions carried out by their customers. At present there are around one lakh ATMs in the country, most of which are owned by banks. There is also a sizeable number of 'Brown Label' machines – ATMs where the investment, installation and maintenance is by a private operator but the licence and branding is of a commercial bank. 
    RBI has allowed corporates to set up ATMs under three schemes. The first scheme is one where the operator has a target of 9,000 white label ATMs in a period of three years. Under this scheme, for every three WLAs installed in Tier III to VI centres, one WLA can be installed in Tier Ito II centres. 
    Under the second scheme, the operator would have to install a minimum of 5000 WLAs every year for three years in the ratio of 2:1 — that is, for every two WLAs installed in Tier III to VI centres, one WLA can be installed in Tier I to II centres. 
    The third scheme requires the operator to put up 25,000 WLAs in the first year and at least another 25,000 in the next two years in the ratio of 1:1.