Muthoot Finance has received an approval to establish White Label ATMs in accordance with the guidelines issued by the Reserve Bank of India (RBI). The board at its meeting held on October 29, 2012 has approved for the same.
Besides, in principle decision was taken at the meeting of the board of directors to seek approval of the shareholders to amend the ‘Other Objects clause’ of the Memorandum of Association of the company to enable the company to set up the White Label ATMs and to commence the business thereof.
The RBI has permitted non-bank entities incorporated in India under the Companies Act 1956, to set up, own and operate Automated Teller Machines (ATMs) in India. The non-bank entities that intend setting up, owning and operating ATMs, is christened as ‘White Label ATM Operators’ and such ATMs are called ‘White Label ATMs’.
Muthoot Finance is a non-deposit taking systemically important non-banking finance company (NBFC). It is primarily in the business of lending against used household gold jewellery to individuals.
