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Muthoot Finance voluntarily surrenders licence for operating white label ATMs

Muthoot Finance voluntarily surrenders licence for operating white label ATMs

The Reserve Bank of India has said that following the cancellation of the CoA, the gold loan non-banking finance company (NBFC) cannot transact the business of setting up, owning and operating white label ATMs.

White label ATMs are owned, set up and operated by non-bank entities such as Muthoot Finance White label ATMs are owned, set up and operated by non-bank entities such as Muthoot Finance

Muthoot Finance Limited has voluntarily surrendered its certificate of authorisation (CoA) for setting up, owning, and operating white label ATMs (automated teller machine), stated the Reserve Bank of India in an official statement.

The central bank added that following the cancellation of the CoA, the gold loan non-banking finance company (NBFC) cannot transact the business of setting up, owning and operating white label ATMs.

White label ATMs are owned, set up and operated by non-bank entities such as Muthoot Finance. RBI authorises non-bank ATM operators under the Payment and Settlement Systems Act, 2007.

RBI also stated that three Payment System Operators (PSOs) - DigitSecure India Private Limited, Kedia Infotech Limited, Oxigen Services (India) Private Limited - have voluntarily surrendered their prepaid payment instruments (PPI) license.

It explained that following the cancellation of the CoA,  these companies cannot transact the business of issuance and operation of Prepaid Payment Instruments. "However, customers or merchants having a valid claim, if any, on these companies as PSOs, can approach them for settlement of their claims within three years from the date of cancellation," read the RBI statement.

Meanwhile, the Reserve Bank of India (RBI) has empanelled Bandhan Bank to act as an agency bank to facilitate transactions related to government businesses.

The announcement comes months after an RBI guideline that authorised scheduled private sector banks as agency banks of the regulator for the conduct of government business.

As an agency bank, it will be able to handle transactions related to collection of state taxes, and revenue receipts such as GST and VAT, collection of stamp duty, and pension payments on behalf of central and state governments, noted Bandhan Bank in an official statement.

Also Read: PMC Bank customers to not get Rs 5 lakh deposit cover in first lot, says RBI

Also Read: Bandhan Bank empanelled as agency bank of RBI to facilitate govt transactions

Published on: Nov 01, 2021, 5:34 PM IST
Posted by: Mohammad Haaris Beg, Nov 01, 2021, 5:29 PM IST