In a bid to accelerate the growth and wider spread of ATMs, the Reserve Bank has issued draft guidelines for permitting non-banking entities to set up, own and operate such money dispensing machines. Non-bank entities proposing to set up such service will have to have a minimum net worth of Rs 100 crore, RBI said.

“The RBI has sought views/comments on the draft circular from banks, authorised ATM network operators, non-bank entities and members of public,” it said, adding that the stakeholders can make suggestions by March 6. “It has been decided to permit non-banks to set up, own and operate ATMs to accelerate the growth and penetration of ATMs in the country. Such ATMs will be in the nature of White Label ATMs (WLA) and would provide ATM services to customers of all banks,” the draft guidelines said. The banking sector has seen considerable growth in ATMs during recent years with around 87,000 machines operational across the country. However, they are largely restricted to the urban and metro areas. “Although there has been about 30 per cent year-on-year growth in the number of ATMs deployed in the country since 2008, ATM penetration on a per capita basis continues to be less compared to other countries. There is therefore, an abundant scope and a felt need to deploy more ATMs, particularly in Tier III to VI areas of the country,” the apex bank said.