Srei Infrastructure Finance today said it has been permitted by the Reserve Bank of India (RBI) to set up at least 9,000 white label ATMs over the next three years in rural India. The infrastructure finance company is also one of the 25 companies that have applied for a new banking licence.
"Srei has been authorised by the RBI to set up, own and operate white label ATMs with effect from March 25, 2014. Under this certificate of authorisation, Srei has been permitted to set up a minimum of 9,000 white label ATMs in the next three years in the rural India," the company said in a statement here today.
The financial services firm plans to leverage its over 27,000 IT-enabled common service centres, which are already in operation by village level entrepreneurs through its venture initiative, Sahaj e-village. These 27,000 common service centres – in Assam, Bihar, Odisha, Tamil Nadu, Uttar Pradesh and West Bengal – cover an approximate population of 280 million.
Srei will initially conduct a pilot roll-out of 200 white label ATMs in tier 3, 4 and 5 towns in the next six to eight months before scaling it up further.
"This initiative provides scope to expand Srei's presence in the financial services sector across semi-urban and rural India in tier 3 to tier 6 locations as add-on to its current initiatives through Sahaj's footprint under the government of India sponsored common service centres," J Moses Harding, group CEO – liability and treasury management at Srei, said.
He added that the development will also aid Srei's financial inclusion efforts.
Through these white label ATMs, Srei plan to take financial products and services of the sponsor bank to the door-step of the rural population. The services will include cash deposit, financing, remittances and investment products, in addition to handling cash dispensation.
