Lok Sabha Question No. 56 (UNSTARRED), answered on 2015-11-30
Subject: FDI in White Labelled ATM Operations
Ministry: COMMERCE AND INDUSTRY
Asked by: A. ARUNMOZHITHEVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UN STARRED QUESTION NO. 56.

TO BE ANSWERED ON MONDAY, THE 30 TH  NOVEMBER, 2015.

## FDI IN WHITE LABELLED ATM OPERATIONS

## 56.   SHRI A. ARUNMOZHITHEVAN:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् य एवं उद्योग मंत्री

- (a) whether  the  Government  is  considering  to  allow  100%  FDI  in  white  labelled ATM operations under the automatic route;
- (b) if so, the details thereof;
- (c) whether it is likely to help increasing the number of ATMs in smaller cities and towns; and
- (d) if so, the details thereof?

## ANSWER

## वाणिज् यएवंउद्योगााज् यमंत्रीस् वतंंत्र्रभााा(स्ीमतंीिरममलााीीतंाामि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a) & (b): The Government vide Press Note 11 (2015) dated 01.10.2015 (Annexure) has  allowed  100%  FDI  in  white  labelled  ATM  operations  under  the automatic route, subject to the conditions stipulated therein.
- (c) & (d): This  decision is inter alia aimed at helping Government's objective of enhancing ATM networks in semi-urban and rural areas (mainly in Tier III to VI areas).

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## ANNEXURE

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 56 FOR ANSWER ON 30.11.2015.

## Government of India Ministry of Commerce &  Industry Department of Industrial Policy &  Promotion

## Press Note No.  11 (2015  Series)

Subject:   Foreign Direct Investment (FDI) upto 100% in White Label ATM Operations under automatic route.

The Government of India has reviewed the extant FDI Policy and decided to allow Foreign  Investment  up  to  100%  in  White  Label  ATM  Operations,  under  the  automatic route.  Accordingly,  a  new  sub-para  6.2.18.8.3  in  the  paragraph  6.2.18.8  of  the  of  the Consolidated FDI Policy Circular  is added in the following manner:-

## 6.2.18.8 Non-Banking Finance Companies (NBFC)

| Sector/Activity               | %Equity/ Foreign Investment Cap   | Entry Route   |
|-------------------------------|-----------------------------------|---------------|
| 6.2.18.8.3                    |                                   |               |
| White Labelled ATM Operations | 100%                              | Automatic     |

## Other Conditions:

- i. Any non-bank entity intending to set up WLAs should have a minimum net worth of Rs. 100 crore as per the latest financial year's audited balance sheet, which is to be maintained at all times.
- ii. In case the entity is also engaged in any other 18 NBFC activities, then the foreign investment  in  the  company  setting  up  WLA,  shall  also  have  to  comply  with  the minimum  capitalization  norms  for  foreign  investments  in  NBFC  activities,  as provided in Para 6.2.18.8.2.
- iii. FDI in the WLAO will be subject to the specific criteria and guidelines issued by RBI vide Circular No. DPSS.CO.PD. No. 2298/02.10.002/2011-2012, as amended from time to time.
2. The above decision will take immediate effect.

(Atul  Chaturvedi)

Joint Secretary to the Government  of  India

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D/o IPP File No.: No. 5/4/2013-FC-I dated:  1

st October, 2015

## Copy forwarded to:

1. Press  Information  Officer,  Press  Information  Bureau,  A  Wing,  Shastri  Bhawan,  New Delhi- for giving necessary publicity to the above Press Note.
2. Joint Secretary (I&C), Department of Economic Affairs,
3. North Block, New Delhi
3. Reserve Bank of India, Foreign Exchange Department, Mumbai

For  suitably  incorporating  the policy changes in Foreign Exchange Management (Transfer  or  issue  of  security by  a  person  resident  outside India)  Regulations,  2000  and the relevant schedules thereof.

4. NIC in the Department of Industrial Policy and Promotion- for uploading the Press Note on DIPP's website.
5. Hindi Section, DIPP- for providing Hindi version.

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