Money & Banking

Srei Infra hopes to roll out ATMs on trial basis by Dec

Abhishek Law Shobha Roy Kolkata | Updated on March 12, 2018






Srei Infrastructure Finance Ltd hopes to get the final nod from Reserve Bank of India for setting up its white-label ATMs in the country shortly.

White label ATMs are owned and operated by non-bank entities and, hence, do not carry the label of any particular bank. These ATMs can be accessed by the card-holders of all the banks and the operator is allowed to charge customers as per bank charges. Currently, customers are allowed up to five withdrawals free of charge from other bank ATMs; however, beyond five transactions, banks levy Rs 15 for cash withdrawal and Rs 5 for balance enquiry.

Srei had received in-principal approvals from the apex bank for setting up such ATMs in December 2012. As a pre-requisite to getting the final nod, Srei had to receive clearance from the Foreign Investment Promotion Board (FIPB) as the company has foreign investments. The RBI had, in June 2012, permitted non-bank entities with net worth over Rs 100 crore to own and operate ATMs, particularly in Tier III-VI towns.

“We got the FIPB clearance last week. We hope to get the final nod soon,” Hemant Kanoria, Chairman and Managing Director, Srei, told Business Line.

Srei proposes to set up 1,000 white-label ATMs in first year, 2,000 in the second and 6,000 in the third year of its operation. These ATMs will have the “Srei” brand. Tata Communications Payment Solutions Ltd, a wholly-owned subsidiary of Tata Communications Ltd, has already rolled out its white label ATM under brand “Indicash”; Muthoot Finance has received in-principle approval to set up such ATMs.

PILOT PLAn

Meanwhile, Srei plans to roll out 100 white-label ATMs on a pilot basis at an estimated cost of over Rs 5 crore by December 2013. The commercial rollout of these ATMs are likely to happen by the end of this fiscal on receiving the final nod from RBI, Kanoria said.

“Based on the success of our pilot project, we will go for commercial rollout,” he said.

The company plans to leverage on the strength of its common service centres — Srei Sahaj — for setting up the ATMs in rural areas. Srei, which is primarily into infrastructure and equipment financing, is one of the 26 applicants for new bank licence.

>abhishek.l@thehindu.co.in

>shobha.roy@thehindu.co.in

Published on July 12, 2013

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