Banking
Non-banking entities may open 80,000 ATMs in next eight months

The Finance Ministry expects around 60,000-80,000 white-label ATMs to roll out in the next six to eight months

 

New Delhi: Non-banking entities, which have been allowed by RBI to operate ATMs on behalf of banks, are expected to open 60,000-80,000 automated teller machines in the next eight months, reports PTI.

“We expect 60,000-80,000 white-label ATMs to roll out in the next six to eight months,” a Finance Ministry official said.

This will help in spreading financial inclusion in unbanked areas, the official said.

At present, there are about 90,000 ATMs spread across the country. Of this, nearly one-third are owned by SBI Group.

So far, only banks are allowed to set up and operate ATMs in the country.

Recently, RBI permitted non-banking entities with a minimum net worth of Rs100 crore to set up, own and operate ATMs on behalf of banks.

The RBI in a notification said the automated teller machines (ATMs) operated by non-banking entities will be known as 'White Label ATMs' (WLAs).

Each of these new ATM operators will have a bank sponsoring them, RBI had said.

All services offered by regular ATMs will be available at white label dispensers as well with existing debit or credit cards issued by banks. Customers of all banks can use the new ATM network.

Non-bank entities intending to set up WLAs under these guidelines may approach RBI for seeking specific authorisation within four months from the date of issuance of these guidelines, RBI had said.

Although there has been nearly 23%-25% annual growth in the number of ATMs, their deployment has been predominantly in tier I and II cities.

In spite of the banks' pioneering efforts in this direction, much needs to be done, it said, adding, there is a need to expand the reach of ATMs in Tier III to VI cities.

The RBI final guidelines had said non-bank entities proposing to set up WLAs have to apply to RBI for seeking authorisation under the Payment and Settlement Systems Act, 2007.

Five free transactions in a month as applicable to bank customers for using other bank ATMs would be inclusive of the transactions effected at the WLAs, it had said.

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COMMENTS

bhaskar

5 years ago

The existing ATMs are a nuisance. they go dry/capture the ATM cards/money is not dispensed but debited to account/fake currencies are dispensed sometimes These ATMs are directly under the nose of the bankers and even when there are explicit guidelines by RBI customer still has to run from pillar to post to address grievances. What is the use of WLA if they cannot handle exiting issues

SBI Mutual Fund gets SEBI nod for merging two schemes

Concerned over non-performance of some schemes over a long period of time, the SEBI chairman had said fund houses need to look into the matter and consider the merger of some schemes

 

Mumbai: In its drive to give better returns to investors, SBI Mutual Fund will soon be merging two of its schemes as it has received approval from market regulator Securities and Exchange Board of India (SEBI), a top company official has said, reports PTI.

"We have received one merger approval for two schemes from the market regulator recently, for which, we have applied for quite some time," SBI MF managing director Deepak Chatterjee told PTI.

He, however, declined to name the schemes saying the fund house has to follow some processes like informing the investors after the approval.

SEBI Chairman UK Sinha last week said it would allow merger of schemes to avoid overlapping and ensuring better returns to investors.

Concerned over non-performance of some schemes over a long period of time, Sinha had said fund houses need to look into the matter and consider the merger of some schemes.

"Management (of mutual funds) should look into the areas of non-performance," Sinha

had said, adding he was in favour of merger of schemes on case to case basis.

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Singur Act unconstitutional, says Calcutta High Court

Giving its verdict on an appeal by Tata Motors, the division bench observed that the President's assent had not been taken for the Act and as such it was void and unconstitutional

 

Kolkata: In a setback to West Bengal government led by Mamata Banerjee, the Calcutta High Court on Friday held the Singur Land Rehabilitation and Development Act, 2011, under which the state had vested land leased to Tata Motors, as unconstitutional and void, reports PTI.

Giving its verdict on an appeal by Tata Motors Ltd, a division bench comprising Justices Pinaki Chandra Ghosh and Mrinal Kanti Chaudhury observed that the President's assent had not been taken for the Act and as such it was void and unconstitutional.

The implementation of the order was, however, stayed for two months by the division bench to allow the aggrieved party to appeal before a higher court.

The division bench set aside the order of Justice IP Mukerji who had held the Act to be constitutional. It observed that the single bench had no jurisdiction to fill up loopholes left by the legislature.

The court also observed that what was done in Singur was acquisition of land by the said Act and as such it was void.

Tata Motors had challenged the order of the single bench of the Calcutta High Court, which had upheld the Singur Land Rehabilitation and Development Act, 2011, by which the West Bengal government vested the land leased to the company at Singur, before the division bench of the court.

Tata Motors had appealed against the order of Justice Mukerji, which was passed on 28th September last year. Justice Mukerji had held the Singur Land Rehabilitation and Development Act 2011 to be constitutional.

The court had, however, ordered on 28th September an unconditional stay of the judgement till November two to allow any aggrieved party to file an appeal, if it so desired.

Tata Motors had been leased 997 acres at Singur in Hooghly district, about 40 km from Kolkata, by the previous Left Front government for its Nano car project, billed as the cheapest car.

Trinamool Congress, which was then the main opposition in West Bengal, had demanded return of 400 acres to farmers unwilling to give land for the project.

Tata Motors had moved its Nano small car factory to Sanand in Gujarat in 2008 citing law and order problems, but had kept possession of the leased land at Singur.

After coming to power in May 2011, Chief Minister Mamata Banerjee had the Singur Act passed in the Assembly as one of her government's first major legislations.

Counsel for the state government Kalyan Bandyopadhyay, who is also a Trinamool Congress MP, said that the state would appeal against the order in the Supreme Court.

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