ew Delhi: In a bid to give a fillip to the ‘Incredible India' campaign and cinema as a sub-brand of Incredible India at various international film festivals and markets abroad, the Ministry of Information and Broadcasting and Ministry of Tourism on Thursday signed a memorandum of understanding to provide support for film tourism.
According to the MoU, the Ministry of Tourism will provide budgetary support for identified film festivals and provide a single window clearance for film shooting permissions. It will create a film tourism vertical, promoting India as a filming destination both for domestic and foreign film producers.
The Ministries would constitute a National Level Committee for coordination with various stakeholders for promotion of India as a tourism and film destination. The Committee will initiate dialogues with the State Government and Union Territories within India for development of locations for film shootings.
“India produces a large number of films which are a brand in themselves and as a destination we are quite attractive. The idea is to synergise the attempts of both the Ministries,” said Ms Ambika Soni, Information and Broadcasting Minister.
The MoU is expected to increase world tourist arrivals in the country from 0.06 per cent to 1.0 per cent by the end of the 12th Five-Year Plan. This would result in achieving 11.37 million foreign tourist arrivals by 2016, as compared to 6.29 million foreign tourists in 2011. “The additional 5 million inbound tourist would create three crore jobs in the country,” said the Minster of Tourism, Mr Subodh Kant Sahay.
Last year, the I&B Ministry had tried to integrate the brand ‘Cinemas of India' with the ‘Incredible India' campaign at the Cannes Film Festival.
Success in my Habit
Sunday, February 19, 2012
Amway India to set up Rs 300-cr greenfield facility
Kolkata: Amway India, a direct selling FMCG company, plans to set up its first greenfield manufacturing facility in the country at an estimated investment of about Rs 300 crore.
The plant is expected to be commissioned in 2014 and will primarily manufacture products under the nutrition and beauty categories, said Mr William S. Pinckney, Managing Director and Chief Executive Officer, Amway India.
Financials
The company is aiming at a turnover of Rs 2,500 crore in the current fiscal (it follows the January-December accounting year).
Amway witnessed a 19 per cent growth in turnover at Rs 2,130 crore last year, Mr Pinckney said.
The growth in revenues was primarily driven by sale of nutritional supplement products under the brand ‘Nutrilite', followed by beauty and healthcare products, he said.
Ad spend
“The double-digit growth in the last four years has been buoyed by the launch of world-class superior-quality products in the lead categories of health and beauty, increased consumer access strategy coupled with experimental marketing and brand awareness, and product penetration in semi-urban and rural markets,” he said.
The company has earmarked Rs 53 crore towards advertising and marketing this year.
The plant is expected to be commissioned in 2014 and will primarily manufacture products under the nutrition and beauty categories, said Mr William S. Pinckney, Managing Director and Chief Executive Officer, Amway India.
Financials
The company is aiming at a turnover of Rs 2,500 crore in the current fiscal (it follows the January-December accounting year).
Amway witnessed a 19 per cent growth in turnover at Rs 2,130 crore last year, Mr Pinckney said.
The growth in revenues was primarily driven by sale of nutritional supplement products under the brand ‘Nutrilite', followed by beauty and healthcare products, he said.
Ad spend
“The double-digit growth in the last four years has been buoyed by the launch of world-class superior-quality products in the lead categories of health and beauty, increased consumer access strategy coupled with experimental marketing and brand awareness, and product penetration in semi-urban and rural markets,” he said.
The company has earmarked Rs 53 crore towards advertising and marketing this year.
Marico buys Paras' personal care brands from Reckitt
Mumbai: Homegrown consumer products company Marico has acquired the personal care portfolio of Paras from British consumer goods maker Reckitt Benckiser. While Marico did not disclose the deal size, analysts estimate the portfolio, which includes brands such as Livon, Set Wet and Zatak, to be valued at Rs 600-700 crore.
Reckitt put the personal care business, likely to close this financial year with sales of Rs 150 crore, on the block soon after it acquired Paras last year. Morgan Stanley was the advisor to Reckitt on the current transaction. So at Rs 600 crore, it will be four times the sales.
In December, Reckitt acquired Paras Pharma’s over-the-counter and personal care portfolio for Rs 3,260 crore, at seven times its then sales.
For Marico, the current acquisition is a “good complement” to its existing business, which includes mainly hair oil brand Parachute and edible oil Saffola. Milind Sarwate, group chief financial officer, Marico, said the acquisition would give it a greater foothold in the male grooming segment apart from personal care. “All the three Paras brands have been growing at a clip of about 20 per cent per annum,” he said, adding: “The acquisition allows Marico to participate in high-growth categories.”
“You can create a category of the future. Operationally, there are great synergies and we can reach out to a global audience with these additional brands. We already have existing brands of our own in these categories, but now, this will boost our value-added portfolio,” said Saugata Gupta, chief executive of Marico’s consumer products business.
By industry estimates, the male grooming category, including pre- and post-shaving products, men’s toiletries, skin care and hair care products, is close to Rs 3,000 crore in size.
The segments of haircare (Set Wet and Livon) and deodorants (Zatak), in particular, are growing at a clip of 25 per cent and are estimated to be Rs 300 crore and Rs 400 crore in size, respectively.
Marico said it would complete the acquisition in two to three months. It would fund the deal using a mix of debt, equity and internal accruals.
Reckitt had said it wanted to focus on the healthcare portfolio of Paras, which has brands such as D'Cold, Krack and Moov, in an effort to drive greater synergies with its existing business.
Globally, Reckitt is focusing hard on healthcare besides household care, a key category for the company. The Rs 2,000-crore Reckitt India derives bulk of its revenues from Dettol, which plays on the health & wellness platform.
Reckitt’s global chief executive, Rakesh Kapoor, is also said to be excited about healthcare, especially in emerging markets, where the potential is substantial.
Reckitt put the personal care business, likely to close this financial year with sales of Rs 150 crore, on the block soon after it acquired Paras last year. Morgan Stanley was the advisor to Reckitt on the current transaction. So at Rs 600 crore, it will be four times the sales.
In December, Reckitt acquired Paras Pharma’s over-the-counter and personal care portfolio for Rs 3,260 crore, at seven times its then sales.
For Marico, the current acquisition is a “good complement” to its existing business, which includes mainly hair oil brand Parachute and edible oil Saffola. Milind Sarwate, group chief financial officer, Marico, said the acquisition would give it a greater foothold in the male grooming segment apart from personal care. “All the three Paras brands have been growing at a clip of about 20 per cent per annum,” he said, adding: “The acquisition allows Marico to participate in high-growth categories.”
“You can create a category of the future. Operationally, there are great synergies and we can reach out to a global audience with these additional brands. We already have existing brands of our own in these categories, but now, this will boost our value-added portfolio,” said Saugata Gupta, chief executive of Marico’s consumer products business.
By industry estimates, the male grooming category, including pre- and post-shaving products, men’s toiletries, skin care and hair care products, is close to Rs 3,000 crore in size.
The segments of haircare (Set Wet and Livon) and deodorants (Zatak), in particular, are growing at a clip of 25 per cent and are estimated to be Rs 300 crore and Rs 400 crore in size, respectively.
Marico said it would complete the acquisition in two to three months. It would fund the deal using a mix of debt, equity and internal accruals.
Reckitt had said it wanted to focus on the healthcare portfolio of Paras, which has brands such as D'Cold, Krack and Moov, in an effort to drive greater synergies with its existing business.
Globally, Reckitt is focusing hard on healthcare besides household care, a key category for the company. The Rs 2,000-crore Reckitt India derives bulk of its revenues from Dettol, which plays on the health & wellness platform.
Reckitt’s global chief executive, Rakesh Kapoor, is also said to be excited about healthcare, especially in emerging markets, where the potential is substantial.
US delegation to visit West Bengal on February 17 with focus on port sector
Kolkata: A fairly large US delegation is tipped to visit West Bengal on February 17. The team will, essentially, focus on the port sector. The delegation will begin its India trip with Kolkata and then travel to other cities.
According to Ms Judy Reinke, minister counselor for commercial affairs in the US embassy in Delhi, members from at least seven US companies, US Trade and Development Agency and Overseas Private Investment Corporation will form part of the delegation. Ms Reinke was speaking in the city recently.
Incidentally, the companies will include the Port of Baltimore, Ellicott Dredges, DSC Dredges, Great Lakes Bridge & Dock Company and Thermo Fisher. During their two-day stay in Kolkata, the delegation will meet the Union minister of state for shipping, Mukul Roy, and travel to Haldia.
This will be the first visit by a US team to Kolkata in four years. ""This trip will pave the way for more visits by US teams to this city. For instance, we are expecting a water management delegation in April and a mining delegation in December, to mention just two of them,"" Ms Reinke said.
Amongst sectors which interest the US, from the point of view of investment, embrace ports, mining, water management, agri equipment and agriculture in general. The US has certainly changed its strategy as far as trade with Kolkata, and India, goes. ""The efforts are visible,"" Ms Reinke said.
According to Ms Judy Reinke, minister counselor for commercial affairs in the US embassy in Delhi, members from at least seven US companies, US Trade and Development Agency and Overseas Private Investment Corporation will form part of the delegation. Ms Reinke was speaking in the city recently.
Incidentally, the companies will include the Port of Baltimore, Ellicott Dredges, DSC Dredges, Great Lakes Bridge & Dock Company and Thermo Fisher. During their two-day stay in Kolkata, the delegation will meet the Union minister of state for shipping, Mukul Roy, and travel to Haldia.
This will be the first visit by a US team to Kolkata in four years. ""This trip will pave the way for more visits by US teams to this city. For instance, we are expecting a water management delegation in April and a mining delegation in December, to mention just two of them,"" Ms Reinke said.
Amongst sectors which interest the US, from the point of view of investment, embrace ports, mining, water management, agri equipment and agriculture in general. The US has certainly changed its strategy as far as trade with Kolkata, and India, goes. ""The efforts are visible,"" Ms Reinke said.
3 Indian firms get diamond processing licences in Botswana
Mumbai: The opening of Botswana as a major diamond trading hub has opened a new window of opportunity for Indian processing companies.
Three diamond merchants from India have secured licences for participating directly in benefication projects there to ensure supply of rough diamonds.
The move assumes significance as setting up diamond processing units will not only assure rough supplies from Diamond Trading Company (DTC), the marketing arm of the world’s largest mining company, De Beers, but also ensure control over price fluctuations, besides sustained supplies.
While Shrenuj & Co had received licences three years ago, the company has spent $5 million so far in developing a small processing unit. Now, the Shreyas Doshi-led company plans to invest another $5-10 million to set up a full-fledged large diamond cutting and polishing unit in Botswana. Suashish Diamonds and Blue Star are the other two companies that have secured licences in Botswana.
“The detailed plan is being worked out. But, we are planning to invest another $5-10 million as working capital for procuring plant and machinery for a large processing unit,” said Doshi, chairman of the company.
Shrenuj & Co started its South African operations in 2009, marking its presence in the 14th country worldwide. This development follows commencement of its manufacturing unit in Botswana in August the same year. These operations in the southern part of the African continent provide continued access to rough diamonds directly from the mining sources. In these times when diamond reserves are dwindling, these developments acquire importance. Through its South African office, Shrenuj gains access to very high quality rough diamonds from all of southern Africa. The company has already been granted a site by DTC Botswana.
Suashish’s principal manufacturing units are in India, with global distribution through subsidiaries and strategic partnerships in all major markets across the world.
Blue Star Diamonds is a private sector company that offers services in gems, jewellery and watches, with annual total turnover of Rs 250-500 crore. The government of Botswana has issued 21 licences so far to global players, of which five have been given to Indian-origin companies.
Three diamond merchants from India have secured licences for participating directly in benefication projects there to ensure supply of rough diamonds.
The move assumes significance as setting up diamond processing units will not only assure rough supplies from Diamond Trading Company (DTC), the marketing arm of the world’s largest mining company, De Beers, but also ensure control over price fluctuations, besides sustained supplies.
While Shrenuj & Co had received licences three years ago, the company has spent $5 million so far in developing a small processing unit. Now, the Shreyas Doshi-led company plans to invest another $5-10 million to set up a full-fledged large diamond cutting and polishing unit in Botswana. Suashish Diamonds and Blue Star are the other two companies that have secured licences in Botswana.
“The detailed plan is being worked out. But, we are planning to invest another $5-10 million as working capital for procuring plant and machinery for a large processing unit,” said Doshi, chairman of the company.
Shrenuj & Co started its South African operations in 2009, marking its presence in the 14th country worldwide. This development follows commencement of its manufacturing unit in Botswana in August the same year. These operations in the southern part of the African continent provide continued access to rough diamonds directly from the mining sources. In these times when diamond reserves are dwindling, these developments acquire importance. Through its South African office, Shrenuj gains access to very high quality rough diamonds from all of southern Africa. The company has already been granted a site by DTC Botswana.
Suashish’s principal manufacturing units are in India, with global distribution through subsidiaries and strategic partnerships in all major markets across the world.
Blue Star Diamonds is a private sector company that offers services in gems, jewellery and watches, with annual total turnover of Rs 250-500 crore. The government of Botswana has issued 21 licences so far to global players, of which five have been given to Indian-origin companies.
NIIT bags Rs 300 cr project from Home Ministry
Infotech Solutions vendor NIIT Technologies today said it has bagged a deal worth Rs 300 crore to implement a Union Home Ministry project called the Crime and Criminal Tracking Network System (CCTNS), which will be part of the proposed Natgrid.
The company has been selected as the system integrator in Tamil Nadu, Jharkhand and Uttar Pradesh. It is in active pursuit of similar opportunities in other states as well, a senior company official said. Execution of work is already on in Tamil Nadu and Jharkhand.
"These wins are an endorsement of our leadership in providing IT solutions to the government. We have a history of successful implementations with IT programmes in Defence and home affairs," NIIT Technologies chief executive Arvind Thakur said here on the sidelines of the Nasscom leadership summit.
The CCTNS is a comprehensive and integrated nationwide system designed to help the police investigate crime and detect criminals, on which the Union Home Ministry plans to spend Rs 2,000 crore.
The system is expected to connect and share real-time information and data on crime and criminals from across the country thus strengthening the information base of investigating officers.
After the implementation of the system throughout the country, over 14,000 police stations spanning 6,000 district police headquarters, fingerprint bureaux and forensic science laboratories will be linked to a common IT platform enabling investigating officials to get the data of any criminal at the click of a mouse.
"FIRs and photographs can be made available from any police station to any other police station in real-time, after the project is completed across the country," a company official said.
Recently, NIIT Tech also commissioned a Rs 228-crore 'Intranet Prahari' project for the Border Security Force.
The company has been selected as the system integrator in Tamil Nadu, Jharkhand and Uttar Pradesh. It is in active pursuit of similar opportunities in other states as well, a senior company official said. Execution of work is already on in Tamil Nadu and Jharkhand.
"These wins are an endorsement of our leadership in providing IT solutions to the government. We have a history of successful implementations with IT programmes in Defence and home affairs," NIIT Technologies chief executive Arvind Thakur said here on the sidelines of the Nasscom leadership summit.
The CCTNS is a comprehensive and integrated nationwide system designed to help the police investigate crime and detect criminals, on which the Union Home Ministry plans to spend Rs 2,000 crore.
The system is expected to connect and share real-time information and data on crime and criminals from across the country thus strengthening the information base of investigating officers.
After the implementation of the system throughout the country, over 14,000 police stations spanning 6,000 district police headquarters, fingerprint bureaux and forensic science laboratories will be linked to a common IT platform enabling investigating officials to get the data of any criminal at the click of a mouse.
"FIRs and photographs can be made available from any police station to any other police station in real-time, after the project is completed across the country," a company official said.
Recently, NIIT Tech also commissioned a Rs 228-crore 'Intranet Prahari' project for the Border Security Force.
Bangalore, Ahmedabad and Kolkata IIMs make it to Asia-Pacific top 10 again
Bangalore: The Indian Institutes of Management (IIMs) - Bangalore, Ahmedabad and Calcutta - continue to be the quality B-schools in the country.
The trio has figured in the top 10 in the Asia-Pacific region. The QS Global 200 Business Schools Report 2012 has put these B-schools among other Indian schools in the global rankings.
IIM-Ahmedabad is ranked second, IIM-Bangalore's rank is fifth and IIM-Calcutta is ranked eighth.
IIM-A and IIM-C have shown the biggest improvement in employer opinion this year in the region by improving four places.
Indian School of Business has been ranked seventh, S P Jain Institute of Management and Research is at 16 and Indian Institute of Foreign Trade at 21.
INSEAD, Singapore is number one in the region for the third consecutive year. Melbourne Business School (University of Melbourne, Australia), NUS Business School, ( National University of Singapore) and University of New South Wales were some of the other institutes that featured among the top 10 in the region.
The QS global report, which originated in the early 1990s, provides a detailed overview of the most popular business schools around the world based on information given by global recruiters.
It lists out 200 business schools from which employers prefer to recruit MBAs. The ratings are made regionwise (Africa and the Middle East; Asia-Pacific; Europe; Latin America; North America) and MBA specialization ratings.
According to the report, even though business schools in the United States and Europe remain the most popular destinations for MBA, schools in other partsm, like in the Asia-Pacific, are gaining popularity.
"Business schools in the Asia-Pacific region are looking at the standard of top American and European institutions as indicators of how they compare and where they could improve. Furthermore, the economic growth in some Asian countries, particularly in China and India, has heightened the demand for more accredited business schools in the region in order to train the next generation of successful business leaders," says the report.
"IIM-B has shown gradual improvements in the ratings, climbing from sixth (2009) to fifth (2010) and this year missed the top cluster by just 2.7 points," the report says.
However, there is a worry about international student enrolment.
"Many of Asia's business schools lack in international student enrolment, causing concern among employers who are looking for graduates to work in a multinational environment," the report says.
The percentage of international students in IIM-A, IIM-B, IIM-C and ISB is 1, 10, 3 and 5 respectively.
The trio has figured in the top 10 in the Asia-Pacific region. The QS Global 200 Business Schools Report 2012 has put these B-schools among other Indian schools in the global rankings.
IIM-Ahmedabad is ranked second, IIM-Bangalore's rank is fifth and IIM-Calcutta is ranked eighth.
IIM-A and IIM-C have shown the biggest improvement in employer opinion this year in the region by improving four places.
Indian School of Business has been ranked seventh, S P Jain Institute of Management and Research is at 16 and Indian Institute of Foreign Trade at 21.
INSEAD, Singapore is number one in the region for the third consecutive year. Melbourne Business School (University of Melbourne, Australia), NUS Business School, ( National University of Singapore) and University of New South Wales were some of the other institutes that featured among the top 10 in the region.
The QS global report, which originated in the early 1990s, provides a detailed overview of the most popular business schools around the world based on information given by global recruiters.
It lists out 200 business schools from which employers prefer to recruit MBAs. The ratings are made regionwise (Africa and the Middle East; Asia-Pacific; Europe; Latin America; North America) and MBA specialization ratings.
According to the report, even though business schools in the United States and Europe remain the most popular destinations for MBA, schools in other partsm, like in the Asia-Pacific, are gaining popularity.
"Business schools in the Asia-Pacific region are looking at the standard of top American and European institutions as indicators of how they compare and where they could improve. Furthermore, the economic growth in some Asian countries, particularly in China and India, has heightened the demand for more accredited business schools in the region in order to train the next generation of successful business leaders," says the report.
"IIM-B has shown gradual improvements in the ratings, climbing from sixth (2009) to fifth (2010) and this year missed the top cluster by just 2.7 points," the report says.
However, there is a worry about international student enrolment.
"Many of Asia's business schools lack in international student enrolment, causing concern among employers who are looking for graduates to work in a multinational environment," the report says.
The percentage of international students in IIM-A, IIM-B, IIM-C and ISB is 1, 10, 3 and 5 respectively.
Kandla Port awards Rs 1,060-cr dry bulk terminal project to Adani Port and SEZ
Ahmedabad: The Kandla Port Trust (KPT) on Tuesday awarded the Rs 1,060-crore dry bulk terminal development project, off Tekra near Tuna, to its perceived competitor-cum-neighbour, Adani Port and SEZ Ltd (APSEZL), which runs the Mundra Port in Gujarat.
The KPT board, in its meeting, took up the issue of the award of the public-private partnership (PPP) in the project, for which APSEZL had emerged as the successful bidder and short-listed for consideration of the award.
In its January 9 meeting, the Board could not decide on the award as some members suggested that APSEZL be asked to make a presentation assuring that the company, which operates the largest private port in India, would fulfil its promises and complete the project, as stipulated.
In Tuesday's meeting, the board, which had asked APSEZL to make a presentation, raised several queries with the bidder.
The Adani company assured that it was “very serious” about implementing the project and has the required expertise, Mr M.A. Bhaskar Achar, Vice-Chairman, toldBusiness Line.
The project will bring in 14 million tonnes (mt) of cargo annually to Kandla Port.
The Adanis would develop the satellite port in two years, which is part of the 30-year concession.
The KPT board, in its meeting, took up the issue of the award of the public-private partnership (PPP) in the project, for which APSEZL had emerged as the successful bidder and short-listed for consideration of the award.
In its January 9 meeting, the Board could not decide on the award as some members suggested that APSEZL be asked to make a presentation assuring that the company, which operates the largest private port in India, would fulfil its promises and complete the project, as stipulated.
In Tuesday's meeting, the board, which had asked APSEZL to make a presentation, raised several queries with the bidder.
The Adani company assured that it was “very serious” about implementing the project and has the required expertise, Mr M.A. Bhaskar Achar, Vice-Chairman, toldBusiness Line.
The project will bring in 14 million tonnes (mt) of cargo annually to Kandla Port.
The Adanis would develop the satellite port in two years, which is part of the 30-year concession.
Crowning glory: Indira Gandhi International Airport second best in the world
New Delhi: Delhi's IGI airport has been ranked the second-best airport in the world for 2011by theAirportsCouncil International. The airport scored this distinction in the category of airports with 25-40 million passengers per annum. Last year , it had been ranked fourth in the same category. The airport scored 4.72 of a possible 5 in the airport service quality index , coming 6in the overall airport ranking for 2011.
This is a massive jump for the airport which, before privatization in 2007, had scored 3.02 on the ASQ and did not manage a rank in the top 100. Delhi International Airport (P) Ltd (DIAL) commended the efforts of agencies such as customs , immigration , CISF , airlines , concessionaires , housekeeping and other support staff for contributing to the image make-over for the airport.
DIAL's CEO I Prabhakara Rao said : "IGIA has come a long way in the last five years since we took over. We have ensured that quality has become a way of life not just with DIAL employees , but with all stakeholders of the IGI airport family. We are confident that all 30 ,000 plus members of the IGI airport family will continue to strive for excellence and we hope to improve our position even further in the coming years."
IGI airport handled a record number of 35 million passengers in 2011. The airport has an annual passenger capacity of over 60 million of which terminal 3 can alone handle 34 million passengers. The airport also handled over 6 lakh tonnes of cargo and over 3 lakh aircraft movements in 2011.
Airports Council International is the only global trade representative of airports with 580 members operating from 1,650 airports in 179 countries and territories.
This is a massive jump for the airport which, before privatization in 2007, had scored 3.02 on the ASQ and did not manage a rank in the top 100. Delhi International Airport (P) Ltd (DIAL) commended the efforts of agencies such as customs , immigration , CISF , airlines , concessionaires , housekeeping and other support staff for contributing to the image make-over for the airport.
DIAL's CEO I Prabhakara Rao said : "IGIA has come a long way in the last five years since we took over. We have ensured that quality has become a way of life not just with DIAL employees , but with all stakeholders of the IGI airport family. We are confident that all 30 ,000 plus members of the IGI airport family will continue to strive for excellence and we hope to improve our position even further in the coming years."
IGI airport handled a record number of 35 million passengers in 2011. The airport has an annual passenger capacity of over 60 million of which terminal 3 can alone handle 34 million passengers. The airport also handled over 6 lakh tonnes of cargo and over 3 lakh aircraft movements in 2011.
Airports Council International is the only global trade representative of airports with 580 members operating from 1,650 airports in 179 countries and territories.
RBI to permit non-banking entities to set up ATMs
Mumbai: In a bid to accelerate the growth and penetration of ATMs in the country, the Reserve Bank of India on Tuesday said it plans to permit non-banking entities to set up, own and operate ATMs.
ATMs rolled out by non-banks will be like White Label ATMs (WLA) and will provide ATM services to customers of all banks, the RBI said in its Draft Guidelines for WLAs.
Non-bank entities proposing to set up WLAs have to apply to the RBI seeking authorisation under the Payment and Settlement Systems Act 2007. Such entities should have a minimum net worth of Rs. 100 crore at the time of making the application and on a continuing basis after issue of the requisite authorisation.
Being non-bank owned ATMs, the guidelines on five free transactions in a month for using other bank ATMs will not be applicable for transactions made on the WLAs. The charges for the transactions have to be displayed on the screen before the customer initiates the transaction.
'Sponsor Bank'
The WLA operator will have to declare one “Sponsor Bank”, which will serve as the Settlement Bank for the settlement of all the service transactions at the WLAs. The Sponsor Bank should be a member of one of the ATM networks authorised by the RBI and also be a member of the RTGS.
While the primary responsibility to redress grievance of customers relating to failed ATM transactions will vest with the Card Issuing Bank, the Sponsor Bank will provide necessary support in this regard.
The RBI's directives on the time-lines for resolution of complaints of failed ATM transactions will also apply to transactions at the WLAs.
The WLA operator can choose the location of the WLA. However, it will adhere to annual targets and the ratio of WLA between Tier I &II and Tier III-VI centres that may be stipulated by the RBI.
ATMs rolled out by non-banks will be like White Label ATMs (WLA) and will provide ATM services to customers of all banks, the RBI said in its Draft Guidelines for WLAs.
Non-bank entities proposing to set up WLAs have to apply to the RBI seeking authorisation under the Payment and Settlement Systems Act 2007. Such entities should have a minimum net worth of Rs. 100 crore at the time of making the application and on a continuing basis after issue of the requisite authorisation.
Being non-bank owned ATMs, the guidelines on five free transactions in a month for using other bank ATMs will not be applicable for transactions made on the WLAs. The charges for the transactions have to be displayed on the screen before the customer initiates the transaction.
'Sponsor Bank'
The WLA operator will have to declare one “Sponsor Bank”, which will serve as the Settlement Bank for the settlement of all the service transactions at the WLAs. The Sponsor Bank should be a member of one of the ATM networks authorised by the RBI and also be a member of the RTGS.
While the primary responsibility to redress grievance of customers relating to failed ATM transactions will vest with the Card Issuing Bank, the Sponsor Bank will provide necessary support in this regard.
The RBI's directives on the time-lines for resolution of complaints of failed ATM transactions will also apply to transactions at the WLAs.
The WLA operator can choose the location of the WLA. However, it will adhere to annual targets and the ratio of WLA between Tier I &II and Tier III-VI centres that may be stipulated by the RBI.
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