Muthoot Finance to set up 250 ATMs in next 3 months

These ATMs will be deployed at public locations like bus-depots, shopping malls, educational institutions, offices and small kirana stores

Muthoot Finance, a leading gold financing company, plans to set up 250 white label ATMs in the next three months.

 

"We have in-principle approval from the RBI. We have identified locations in two states and intends to operationalise 250 ATMs by December," Muthoot Finance Chief General Manager K R Bijimon said.

 

The company has identified locations in Delhi and Kerala to begin with, he said, adding that the total number of ATMs would go up to 1,000 by the end of September next year.

 

We have plans to roll out different models of ATMs such as through the wall ATMs, drive-in ATMs, Mini-ATMs and moving ATMs to name a few, he said.

 

These ATMs will be deployed at public locations like bus-depots, shopping malls, educational institutions, offices, small kirana stores, cinemas, public parks and even at own branches of the company, he added.

 

Last year, RBI allowed non-banking entities to set up white label ATMs without carrying any brand label of any bank. These ATMs could be used by any bank customers without paying any charge.

 

Every white label ATM operator is required to tie up with a sponsor bank, which takes care of cash operations, dispute resolution and regulatory reporting aspects.

 

RBI in February last year permitted the non-banking entities to operate and own such ATMs with the objective of enhancing the spread of ATMs in semi-urban and rural areas where bank-owned ATM penetration was not growing.

 

Earlier in June 2012, the RBI had issued policy guidelines permitting non-bank entities to set up and operate such ATMs in the country after seeking authorisation under the Payment and Settlement Systems Act, 2007.

 

Previously, only banks were permitted to set up and operate ATMs in India.