FDI UP TO 100 PER CENT IN WHITE LABLE ATM OPERATIONS UNDER AUTOMATIC ROUTE

By | October 8, 2015

FDI POLICY CIRCULAR OF 2015 EFFECTIVE FROM 12-5-2015 – FDI UP TO 100 PER CENT IN WHITE LABLE ATM OPERATIONS UNDER AUTOMATIC ROUTE – INSERTION OF PARAGRAPH 6.2.18.8.3

PRESS NOTE NO.11 (2015 SERIES), DATED 1-10-2015

The Government of India has reviewed the extant FDI Policy and decided to allow For 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.

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