HDFC Bank to continue with ATM roll out plan despite RBI allowing third party operators

New Delhi: India's second largest private sector lender HDFC Bank intends to continue with its ATM (automated teller machine) roll out plan despite the central bank's in-principle approval recently to allow non-banking companies operate white-label ATMs, Rahul Bhagat, head (direct banking channels) of the bank, said.

Earlier last week, RBI had released draft guidelines pertaining to minimum net worth and roll out obligations for allowing independent non-banking firms to operate ATMs, in a move to increase penetration of banking services in the country.

Bhagat further said that up to 50% of the transactions in the bank's existing ATMs are conducted by non-HDFC Bank account holders.

This has helped the bank earn a good fee income, which in turn will be used to cover the cost of installing new ATMs, he added.

However, Bhagat did not reveal the number of ATMs the bank plans to open.

India has 87,000 ATMs at present, as per RBI data.

As on December 31, 2011, HDFC Bank had a network of 2,201 branches and 7,110 ATMs.

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