Tatas to launch 5,000 White Label ATMs in a year

Tatas are all set to launch white label ATMs across the country. Tata Communication's  subsidiary Tata Communication Payment Solutions will roll out 5000 ATMs in the next one year, reports CNBC-TV18’s Gopika Gopakumar.

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White label ATMs are those which do not carry the label of a bank. These are owned and operated by non-bank entities like corporates. So, in this case, Tata Communications subsidiary Tata Communications Payment Solution will roll out around 15,000 ATMs in the next three years, that is, 5000 ATMs per year.

We understand that the minimum net worth for this rollout will be Rs 100 crore. The Tata company will roll out these ATMs under the brand name ‘Tata’. Also, the rollout scheme will be a 3:1 ratio which means that three ATMs will be set up in tier 3 to tier 6 cities and one ATM will be setup in tier 1 to tier 2 cities.

The customer will be charged the same charge they pay the other banks that is, around Rs 15 per transaction, going beyond five transactions in every ATM. So, that is the basic plan at this point in time. The announcement is expected anytime next week.

The main idea behind this white label ATM is that Reserve Bank of India (RBI) wants to further financial inclusion. As banks incur a huge cost while setting up ATMs, the central bank believes that by doing this  they will be able to further the concept of financial inclusion.