The Reserve Bank of India is exploring the idea of increasing the license period for white label ATM providers from one year to five years. This has been prompted buy the feedback from companies that have secured an in-principal approval to set up these ATMs, a senior RBI official said.
RBI had a meeting in Mumbai with officials of companies that were granted approval to set up the ATMs.
Representatives from Srei Infrastructure Finance, Tata Communication, Vakranges Software and AGS Transact were among those present in the meeting.
"We had called the operators to discuss their issues. The RBI may look into their demands for increasing the tenure of their licence," the RBI official said.
Many companies requested the RBI to extend the validity of the licences. Initially, white label ATMs would be valid for the period of one year.
"One year is too less a time for companies to settle in and earn revenue. This will be especially detrimental for players who do not have presence in rural areas. They will take more than a year to identify the correct locations and roll out the infrastructure," said one of the company officials.