Bengaluru-based BTI Payments Pvt Ltd is planning to add about 300 ATMs every month over the next six quarters to ramp up its ATM network from 5,300 to 10,000.

The white label ATM (WLA) operator, which is a joint venture between The Banktech Group, Australia, and ICICI Venture Funds Management Company Ltd, will be utilising the ₹150 crore capital infusion it received in August for the ATM network expansion, mostly in semi-urban and rural (SURU) areas.

"While digital transactions are growing by leaps and bounds, the volume of cash in circulation is also increasing. Therefore, there is a need for banking/ATM infrastructure.

"In many SURU areas, most of the subsidies, which earlier used to be in the form of cash, are today going into the bank accounts of beneficiaries. These beneficiaries will ultimately need to withdraw cash. So, the ATM infrastructure will need to grow," said K Srinivas, MD & CEO, BTI Payments.

To buttress his point as to why the ATM footprint needs to expand further, Srinivas observed that despite the jump in digital transactions, the number of ATM transactions were growing between 13 to 15 per cent year-on-year. So, digital and cash transactions, including at ATMs, will co-exist for a long time.

"If you look at the ATM infrastructure today, it is skewed towards the metro and urban areas. In states like Uttar Pradesh, Bihar, Madhya Pradesh, Rajasthan and West Bengal, the infrastructure is very poor.

"So, the skew is evident. I think that there is an opportunity to expand the network. If you are focusing on underpenetrated areas, then there is a significantly large market. So, our area of operations will obviously be in the SURU areas," he said.

BTI started WLA operations in 2013. The The Banktech Group has 51 per cent stake in the company while ICICI Venture Funds hold the balance.

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