The Reserve Bank of India (RBI) has officially awarded a white-label ATM (WLA) license to Electronic Payment and Services (EPS), marking a pivotal move to enhance the ATM network in the country and strengthen the cash economy. This decision comes after a significant hiatus of nearly ten years since the last license was issued.
White-label ATMs are unique in that they are owned and operated by non-banking organizations, allowing customers from any banking institution to access their services seamlessly. EPS, based in Mumbai, is supported by reputable investors such as the UK’s Apis Partners and the Dutch Entrepreneurial Development Bank (FMO). With this new license, EPS joins an elite group of operators, becoming the fifth white-label ATM provider in India, alongside Tata Communications Payment Solutions, India1 Payments, Hitachi Payment, and Vakrangee. The last license was granted in 2014 to India1 Payments, and since then, three other companies have voluntarily surrendered their licenses.
The founder and chairman of EPS, Mani Mamallan, stated that the company plans to establish, own, and operate WLAs throughout India under the newly granted license. Currently, EPS manages a network of over 10,300 ATMs for various banks, which positions them well for this expansion.
This approval is a significant step toward improving the availability of ATMs, particularly in tier-3 cities and underserved areas, thereby enhancing overall banking services for the population. With the increasing demand for cash accessibility and the growing importance of digital transactions, this initiative is expected to play a crucial role in advancing financial inclusion across the nation.
