The Cabinet on Wednesday permitted 100 per cent foreign direct investment (FDI) under the automatic route for white label ATM operations, a move that is aimed at promoting financial inclusion.
“This decision will ease and expedite foreign investment inflows in the activity and thus give a fillip to the Government's effort to promote financial inclusion in the country, including the Pradhan Mantri Jan Dhan Yojna,” an official statement said.
The decision was taken in the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi here. It is expected that consequent to ease of investing in India, adequate funds would be available in white label ATM operations, it said.
“This would help in government's objective of enhancing ATM networks in semi-urban and rural areas,” it said, adding that participation of foreign investors in the sector will contribute to furthering financial inclusion. Till date, foreign investment in while label ATM operations (WlAO) was allowed through the Government approval route.