Muthoot Finance, gold loan non-banking financial company (NBFC) is planning to soon enter into the white label ATMs (WLAs) space to mark its presence in financial services. Muthoot Finance has applied to the Reserve Bank of India for the approval.
The white label ATMs are only operated by the non-banking entities as of now according to the present policy.
Earlier this year, RBI has decided to allow the non-banking entities to set up and operate ATMs if the net worth of the bank is more than Rs 100 crore. This will help them increase the per capita availability and will also help the non-banks to enter in tier-III to Tier-VI towns and villages.
In June, 2012 Reserve Bank of India came out with the guidelines for white labeled ATMs.
Joint General Manager of Muthoot Finance, Mr. Suresh Kumar said, "We want to leverage our presence in rural markets, as RBI wants most WLAs in tier-III to tier-VI centres, and most of our branches are located in these centres".