The Reserve Bank of India (RBI) has eased norms related to the deployment of white-label ATMs or ATMs that are set up and operated by non-banking entities. The central bank is in favour of setting a manageable annual target for the number of white-label ATMs deployed, according to a Business Standard report.
Moneycontrol could not independently verify the story.
Seven years after they began operations, only 23,597 WLATMs have been deployed, Business Standard reported.
If the annual target had been maintained, as many as 2 lakh WLATMs could have been deployed by now, industry sources told the publication.
White-label companies have been told that they will be evaluated on an annual basis, with manageable targets and the kind of cities (from tier-I to tier-VI) in which ATMs are deployed, the report said.
The targets are confidential and specific to each company, the report added.
"The earlier targets were hard to meet. We also miscalculated as it is a capital-guzzling business and private equity may not continue to support us as in the past," said the chief executive officer of a white-label deployer told the paper.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
