Lok Sabha Question No. 1720 (UNSTARRED), answered on 2016-11-25
Subject: ATMs Operating Agencies
Ministry: FINANCE
Asked by: RAVINDRA KUMAR RAY

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO.1720

TO BE ANSWERED ON THE 25"h November; 2016/ Agrahayana 4, 1938 (SAKA) ATMs Operating Agencies

## DR. RAVINDRA KUMAR RAY:

Will the Minister of FINANCE be pleased to state:

- (a) the norms for appointing ATM operating agencieslcompanies by Public Sector Banks (PSBs);
- (b) the details of agencies which are operating ATMs of banks in the country, agencyl bankwise;
- (c) whether there is any provision for ATM operating companies to submit their audit reports every year in time; and
- (d) If so, the details thereof and if not, the action against such defaulting companies?

## ANSWER

- (a) It is informed that Banks have been permitted outsourcing of financial services vide circulars dated November 3, 2006 and March 11, 2015 on 'Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by Banks' issued by Reserve Bank of India (RBI).

## The Minister of State in the Ministry of Finance (SHRI SANTOSH KUMAR GANGWAR)

Due diligence in outsourcing involves an evaluation of all available information about the service provider, inter  alia including but not limited to security and internal control, audit coverage, reporting and   monitoring environment; Business continuity management: The terms and conditions governing the contract between the bank and the service provider should be carefully defined in written agreements and vetted by bank's legal counsel on their legal effect and enforceability:

- (b) Total ATMs for Scheduled Commercial Banks as on June 30,2016 is 201334. The details of White Label ATMs (WLAs) managed by agencies is as under -
- (d) The audit reports are to be acted upon by the banks.

| Name of the Entity                         |   Metro Centres |   Urban Centres |   Semi-Urban Centres | Rural Centres   |   Total |
|--------------------------------------------|-----------------|-----------------|----------------------|-----------------|---------|
| Tata Communications Payment Solutions Ltd. |            1310 |            1226 |                 2507 | 3212            |    8255 |
| Hitachi Payment Services Pvt. Ltd.         |             159 |             228 |                  355 | 298             |    1040 |
| Muthoot Finance Ltd                        |              28 |              60 |                   74 | 22              |     184 |
| BTI Payments Pvt.Ltd                       |             132 |             142 |                 1495 | 2028            |    3797 |
| Vakrangee Limited                          |             106 |              63 |                   45 | 90              |     304 |
| Riddhi Siddhi Bullions Limited             |              21 |              96 |                   73 | 14              |     204 |
| AGS Transact Technologies Ltd              |              62 |              10 |                    0 |                 |      73 |
| Total (WLAsE                               |            1818 |            1825 |                 4549 | 5665            |   13857 |