Tata Communications Payment Solutionstoday launched the country's first ever network of white label ATMs called 'Indicash'. The company, a wholly-owned subsidiary of Tata Communications, set up the first ATM at Chandrapada in Thane district of Maharashtra today.
It said that it plans to roll out 15,000 ATMs over the next three years which will help increase ATM penetration and accessibility of masses to banking services.
"We plan to roll out 15,000 ATMs over the next three years, 67 per cent of which will come up in semi-urban and rural areas of the country," Chief Executive Officer of Tata Communications Payment Solutions Sanjeev Patel told reporters here. He also said that the company is aiming at installing 50,000 ATMs by 2016.
He, however, didn't reveal the investment that the company would be making for rolling out these ATMs. The payment solution company currently manages 27,000 ATMs for various banks. The RBI had in February 2012 permitted non-banking entities to operate and own ATMs to enhance the spread of ATMs in semi-urban and rural areas where bank-owned ATM penetration is not growing.
As per the industry sources, India is an under penetrated ATM market with only 98 ATMs per every 10 lakh of population compared to 1390 in the US, 530 in UK and 211 in China.