The Reserve Bank of India (RBI) has approved Tata Communications' sale of its 100% stake in Tata Communications Payment Solutions Limited (TCPSL) to the Australian fintech company Findi's Indian subsidiary, Transaction Solutions International (TSI).
The deal, announced in November 2024, is valued at Rs 330 crore (AUD 59.1 Mn), with an additional Rs 75 crore contingent on certain conditions.
Indicash, Tata Communications Payment Solutions Limited's White Label ATM network, was launched in June 2013. Indicash became India’s first-ever network of white label ATMs. It was in line with the RBI’s vision to accelerate growth and increase ATM penetration across the country. TCPSL currently owns and manages one of the largest networks of white label ATMs in the country.
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White Label ATMs do not display the branding of any specific bank. Instead, they operate under the label of the non-bank entity.
This acquisition will significantly expand Findi's presence in India's financial services sector, particularly targeting the 'underbanked' population. It aligns with TSI's ambition to evolve into a full-fledged payments bank, leveraging its current network of over 7,500 ATMs.
Launched in 2005, TSI operates a brown label ATM business, partnering with 12 public and private sector banks (including State Bank of India, Central Bank of India, Punjab National Bank and HDFC Bank), and has experience of managing backend operations for 10,000+ white label ATMs over the last eight years. It also enables payment services through its network of 40,000+ merchants via the brand FindiPay (started in 2018).
For an uninitiated, White Label ATMs (WLAs) are owned and operated by non-bank entities, do not display any specific bank branding, and aim to increase ATM accessibility, especially in rural and semi-urban areas. While Brown Label ATMs (BLAs) are where a third-party service provider owns the ATM hardware and lease, while a sponsor bank provides cash management and network connectivity. These ATMs display the branding of the sponsor bank.
While the RBI does not directly regulate BLAs, it ensures that banks and service providers adhere to necessary regulations through contractual obligations. Banks like Axis and ICICI Bank often use BLAs to expand their ATM presence.
This acquisition will significantly expand Findi's presence in India's financial services sector, particularly targeting the 'underbanked' population. It aligns with TSI's ambition to evolve into a full-fledged payments bank, leveraging its current network of over 7,500 ATMs.
Launched in 2005, TSI operates a brown label ATM business, partnering with 12 public and private sector banks (including State Bank of India, Central Bank of India, Punjab National Bank and HDFC Bank), and has experience of managing backend operations for 10,000+ white label ATMs over the last eight years. It also enables payment services through its network of 40,000+ merchants via the brand FindiPay (started in 2018).
For an uninitiated, White Label ATMs (WLAs) are owned and operated by non-bank entities, do not display any specific bank branding, and aim to increase ATM accessibility, especially in rural and semi-urban areas. While Brown Label ATMs (BLAs) are where a third-party service provider owns the ATM hardware and lease, while a sponsor bank provides cash management and network connectivity. These ATMs display the branding of the sponsor bank.
While the RBI does not directly regulate BLAs, it ensures that banks and service providers adhere to necessary regulations through contractual obligations. Banks like Axis and ICICI Bank often use BLAs to expand their ATM presence.
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