Monday, January 7, 2013

SREI to install 25,000 ATMs in rural India

Hemant Kanoria
SREI Infrastructure Ltd plans to set up about 25,000 white label automated telling machines (ATMs ) in rural areas, taking benefit of the policy to throw open the segment for non-banking entities. ATMs set up, owned and operated by a non-banking company will be known as white label ATMs.

Hemant Kanoria, chairman and managing director of SREI, said the company had already applied to the Reserve Bank of India (RBI). SREI proposes to locate most of these ATMs at common service centres (CSCs) operated by Sahaj e-Village Ltd, a SREI group entity.

The final plan will be subject to RBI approval. These CSCs are being set up under the government’s plans to bridge digital divide between rural and urban areas, Kanoria said.

SREI has appointed Bharat Technical Solutions as a project management consultant for its ATM plan. Sahaj is working to set up and manage 28,000 CSCs across six states including Tamil Nadu.

Although there has been nearly 23-25 per cent year-on-year growth in the number of ATMs (present count is above 100,000), deployment has been predominantly restricted to tier-I and II cities. There is a need to expand the reach of ATMs beyond tier-III cities. Much needs to be done to expand the network inspite of banks’ efforts.


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