Bangalore gets first white label ATM center ‘Indicash’Author : Abhigna August 8, 2013 0
BANGALORE, INDIA: Tata Communications Payment Solutions Limited (TCPSL) today inaugurated its Indicash ATM center in Bangalore, marking its foray into the Karnataka state.
This is in keeping with the Reserve Bank of India (RBI) vision to accelerate growth and improve ATM penetration in India, said TCPSL.
Having won the ‘B’ scheme license from the Reserve bank of India (RBI) to set up white label ATMs, TCPSL kick started the process by launching Indicash in Chandrapada village at Thane District in Maharashtra on 27th June 2013, which is a tier 5 village.
Under the scheme ‘B’, RBI mandates that for every 1 ATM in tier 1 and 2 cities, 2 ATMs ought to be deployed in tier 3 and 4 cities.
At present, the company has set up 15 Indicash ATM centers in Bangalore and plans to have over 90 Indicash centers in coming days.
Sanjeev Patel, CEO, TCPSL, said: “Karnataka is a key market for us as it offers a plethora of options to drive ATM reach in IT, industrial, educational, commercial and tourist zones.”
“Our endeavour is to be conveniently located to consumers and to provide a user-friendly interface that truly simplifies the banking experience for the end user,” added Patel.
According to Patel, TCPSL has track record in deploying and managing a contracted 27,000 ATMs for banks in India as of date. And the company has plans to rollout 50,000 ATMs by 2016.
“Internationally, growth in ATM market has been fueled by the white labeled ATM networks, where it holds 46 per cent market share in the US and 70 per cent in Canada,” added Patel.
TCPSL will engage federal bank as ‘sponsor’ bank to ensure cash supply and have smooth back end operations.
Highlighting on the transaction fees levied by banks, Patel said, “The first five transactions per month are free in Indicash centers and subsequent transactions will be charged according to respective bank norms.”
As of now, Indicash will accept only domestic debit cards and those which are engaged with National Financials Switch (NFS).
White label ATMs is happening for the first time in India. It is basically an alternative source of cash dispensing and a non-bank owned ATMs which offers both cash and non-cash services such as cash withdrawals, balance enquiries, mini-statements and PIN changes.