 "DIPP notifies automatic FDI route for white-label ATMs")
Foreign investors would now be able to invest up to 100 per cent equity in white-label ATM operations with the government notifying the regulations on Thursday.
"The government has reviewed the extant FDI (foreign direct investment) policy and decided to allow foreign investment up to 100 per cent in While Label ATM operations under the automatic route," the Department of Industrial Policy and Promotion (DIPP) said in a press note.
To promote financial inclusion, the Union Cabinet on September 9 approved the FDI policy in this regard.
Any non-bank entity intending to set up white-label ATMs should have a minimum net worth of Rs 100 crore according, to the latest financial year's audited balance sheet, which is to be maintained at all times, it said. It also said that in case the entity is engaged in any other 18 non-banking financial companies (NBFC) activities, then the foreign investment in the company setting up the white-label ATM shall also have to comply with minimum capitalisation norms for foreign investments in NBFC activities.
Currently, there are over 182,000 ATMs operated by 54 public, private and foreign banks in the country.
In 2014-15, FDI into the country increased by 27 per cent to $30.93 billion.
"The government has reviewed the extant FDI (foreign direct investment) policy and decided to allow foreign investment up to 100 per cent in While Label ATM operations under the automatic route," the Department of Industrial Policy and Promotion (DIPP) said in a press note.
To promote financial inclusion, the Union Cabinet on September 9 approved the FDI policy in this regard.
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White-label ATMs are set up by private non-bank companies that own and operate their own brand of ATMs. The companies seeking to set up such ATMs would have to follow certain conditions.
Any non-bank entity intending to set up white-label ATMs should have a minimum net worth of Rs 100 crore according, to the latest financial year's audited balance sheet, which is to be maintained at all times, it said. It also said that in case the entity is engaged in any other 18 non-banking financial companies (NBFC) activities, then the foreign investment in the company setting up the white-label ATM shall also have to comply with minimum capitalisation norms for foreign investments in NBFC activities.
Currently, there are over 182,000 ATMs operated by 54 public, private and foreign banks in the country.
In 2014-15, FDI into the country increased by 27 per cent to $30.93 billion.