Tata Communications Payment Solutions (TCPS), a wholly owned subsidiary of Tata Communications, has launched the country's first ever white label ATM (WLA) at Chandrapada town near Mumbai.
RBI had granted the licence to TCPS to start WLAs operations across the country under its scheme 'B'. The scheme 'B' allows WLA operator to setup a minimum of 5,000 ATMs per year for three years and for every two ATMs installed in tier-III to tier-VI towns, the company will be able to install one ATM in tier-I and tier-II cities.
TCPS currently operates 27,000 ATMs for 37 banks in the country and plans to have 50,000 ATMs including 15,000 WLAs by FY 16.
Any WLA licence also has a sponsor bank who supplies cash to the ATM. Early this week old generation private sector lender Federal Bank had announced it has signed up as a sponsor bank for TCPS WLAs.