Mumbai: Private sector HDFC Bank does not intend to cut its ATM roll-out plans in view of the Reserve Bank giving in-principle nod for 'White-Label ATMs", which will be operated by non-banking companies, a top company official said on Wednesday.
"The lender will not cut its ATM roll-out target as a result of the RBI's draft guidelines allowing non-banking entities to set up ATMs, also called as white-label ATMs," HDFC Bank Head (Direct Banking Channels) Rahul Bhagat told.
He declined to share targets for ATM roll-out, but said the country's second-largest private lender has over 7,000 Automated Teller Machines.
On the cost of setting up the facility, Bhagat said up to 50 per cent of transactions at its ATMs is done by non-HDFC Bank account holders, resulting in good fee income, which will take care of the installation cost.
Moreover, he pointed out that when a bank sets up an ATM, it's about giving customers a feel of the service that each bank wants to give out on its own.
The RBI's draft guidelines, issued earlier this month, on allowing non-banking firms to set up ATMs aims at increasing the penetration of banking services.
According to the apex bank, a majority of the over 87,000 ATMs are based in the metros and other urban areas.
HDFC Bank today tied up with Visa and Monitise-promoted Movida to facilitate mobile-based transactions for its debit and credit card-holders.
Under the service, mobile phone subscribers without internet connectivity will be able to pay for services like electricity bills and mobile recharges.