Union Cabinet allows 100 per cent FDI under automatic route for white label ATMs
The Union Cabinet has allowed 100 per cent foreign direct investment (FDI) under the automatic route for white label ATM operations (WLAO).
Decision in this regard was taken in Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.
This decision will expedite and ease FDI inflows in WLAO further giving a fillip to the government’s ambitious effort to promote financial inclusion in the country, including the Pradhan Mantri Jan Dhan Yojna (PMJDY).
Prior this approval, foreign investment in WLAO was allowed through the government approval route which required some processing time and projects were delayed.
White labeled ATMs
- Private non-bank companies that own and operate their own brand of ATMs are termed as White labeled ATMs. They were meant to expand the reach of ATMs in Tier III to VI centres.
- As per RBI guidelines, it is mandatory to non-bank companies owning white labelled ATMs to provide banking services to customers based on cards (credit/debit/prepaid) issued by banks.
Categories: Banking Current Affairs 2017