Federal Bank, Kerala based private sector bank, has tied up with Tata Communications to install 15,000 White-Label ATMs (WLAs) across the country. As per the arrangement, 5,000 ATMs will be installed across the country every year for a period of three years, taking the total to 15,000 ATMs. Federal Bank being a sponsor bank will take care of cash operations, dispute resolution and regulatory reporting aspects.
Subsequent to RBI announcing its white label automated teller machines norms, this is first such tie-up between a lender acting as a sponsor bank and a private company. RBI has granted Tata Communications Payment Solutions (TCPS), a subsidiary of Tata Communications, license to set up and operate white-label ATMs in the country.
White-Label ATMs are to be set up by non-banking entities on behalf of ‘sponsor banks’ but they would not carry the brand label of any bank, and would be accessible to card-holders of all the banks for a fee.
