Seri Infra to set up white label ATMs

http://www.thehindubusinessline.com/industry-and-economy/banking/seri-infra-to-set-up-white-label-atms/article4091165.ece

Srei Infrastructure Finance Ltd said it will set up white label ATMs (WLAs) to diversify its business.

The infrastructure non-banking finance company may be diversifying into the WLA business as the infrastructure financing business is facing a slowdown.

WLAs are the ATMs which are provided by third parties to banks.

Last week, Muthoot Finance decided to diversify into the WLA business. To accelerate the growth and penetration of ATMs in the country, the RBI, in February 2012, decided to permit non-banks to set up, own and operate ATMs.

The central bank said that the ATMs rolled out by non-banks would be in the nature of WLAs and would provide ATM services to customers of all banks.

Non-bank entities proposing to set up WLAs have to make an application to the RBI seeking authorisation under the Payment and Settlement Systems Act 2007.

Such entities are required to have a minimum net worth of Rs 100 crore at the time of making the application and on a continuing basis after issue of the requisite authorisation.