The non-banks have pre-dominantly gravitated towards PPI issuance and it is hoped that the recent rationalisation of the PPI guidelines, as mentioned earlier, will spur their efforts in increasing non-cash transactions in the economy. Given that semi-closed PPIs can be used for funds transfer, we are keenly awaiting the developments in this area.
Non-banks have now been allowed to set-up and operate ATMs under the scheme of White Label ATMs (WLAs). This has been done to increase the penetration and deployment of ATMs, especially in the smaller Tier III to Tier VI centres, thereby extending anytime, anywhere banking facility to a wider segment of population.