Muthoot Finance receives RBI sanction to set up a network of ATMs in India

KOCHI: Leading gold loan NBFC Muthoot Finance has received the Reserve Bank of India (RBI) sanction to set up a network of ATMs in the country.

Muthoot Finance is one of the 10 non-bank players to receive RBI license to create ATM networks. The Reserve Bank has given green signal in the ATM project to Muthoot Finance and others as per a policy it enacted in 2012.

Muthoot Finance will now be allowed to create a network of 9000 ATMs spread across the country, the company’s chief general manager K R Bijimon said. “In the first two years we have to set up 3000 ATMs”, he said adding that the remaining 6000 will be set up in the third year.

Muthoot Finance has a network of more than 4000 branches. About 60 % of these branches are in rural or semi urban areas. “We will use our branches to create the ATM network”, Bijimon said.

The NBFC will have to tie up with a sponsor bank for the cash management in the ATMs. The ATM cards of all banks will be accepted by the new ATM network. This is the first time that the RBI is allowing non-bank players to create ATM networks.