)
Private sector lender Federal Bank today said it would work as a sponsor bank for the Tata Group’s White Label ATM (WLA) foray.
WLAs are owned and operated not by a bank but by non-bank agencies. Customers may use these to withdraw money from any bank account, paying a fee.
Tata Communications Payment Solutions Ltd (TCPSL) plans to install 15,000 Automated Teller Machines in three years, Federal Bank said. It would take care of functions such as cash operations and management, dispute resolution management and reporting to regulators. TCPSL, a subsidiary of Tata Communications, has approval from the Reserve Bank of India (RBI) to set up WLAs.
For every two WLAs installed in Tier III to VI centres, one WLA can be installed in Tier I to II centres.
Of the WLAs installed in Tier III to VI centres, a minimum of 10 per cent should be installed in Tier V & VI centres.
Till recently, only banks were permitted to set up ATMs as extended delivery channels. RBI then permitted non-bank entities to set up, own and operate WLAs for expanding their reach in Tier III to VI centers.
Bank has more than 1,100 branches and more than 1,200 ATMs across the length and breadth of the country. At present the bank is serving more than 5 million customers. The Bank has the reputation of having no ATM related customer complaints unsettled till the last financial year.
