In its meeting held on July 29, 2013, Foreign Investment Promotion Board (FIPB) had recommended Muthoot Finance proposal to set up WLA to GOI and the same was approved on September 3, 2013. Earlier, in its letter dated June 21, 2013, Reserve Bank of India (RBI) had already issued an ‘In-Principle Authorization’ to Muthoot Finance Ltd for setting up WLAs.
Says Mr. K.R Bijimon, Chief General Manager, Muthoot Finance Limited: “This is a significant development and we aim to set-up our first ATM in the Southern region by next month. We have taken a strategic decision to establish 65% of these WLAs in semi-urban and rural areas (mainly tier III to VI cities/towns). We are sure this decision will aid in the sustainable and inclusive growth of the nation/economy.”
“Our ATMs would be totally different from the conventional ATMs that the banks in the country have been deploying so far. We have plans to roll out different models of ATMs such as Standalone ATMs, Through the Wall ATMs, Drive-in ATMs, Mini-ATMs and Moving ATMs to name a few. These ATMs will be deployed at public locations like Bus-depots, Shopping malls, Educational institutions, Offices, Small Kirana stores, Cinema Theatres, Public Parks and even at own Branches of Muthoot Finance. Our ATMs will be strategically placed at locations where the public would wish for one. Cards issued by all Banks in India will be accepted at our ATMs. These ATMs will be user-friendly WLAs; even for the differently-abled people – in terms of voice, Braille and wherever feasible, access facilities by ramp also”, added Mr. Bijimon.
Being an industry leader, Muthoot Finance plans to drive on its existing strengths for setting up WLA in various geographical locations - the use of synergy derived from the market leading position in Gold Loan business; a strong presence in under- served rural and semi-urban markets.
Muthoot Finance with its extensive branch network of 4300 plus branches spread across 21 states & 4 Union Territories of India aims to set up 9000 WLAs in 3 years timespan – 1000 in first year, 2000 in second year and 6000 in third year. The company is in the process of outsourcing banks and technical partners for setting up WLAs.
Earlier in June 2012, the Reserve Bank of India had issued policy guidelines permitting non-bank entities to set up and operate WLAs in the country after seeking Authorisation under the Payment and Settlement Systems Act, 2007. Previously, only banks were permitted to set up and operate ATMs in India. The primary objective of permitting non-banks to operate WLAs was to enhance the spread of ATMs in semi-urban and rural areas (mainly tier III to VI cities/towns).
About Muthoot Finance Ltd:
Muthoot Finance Limited is the largest gold financing company in India in terms of loan portfolio. The company is a “Systemically Important Non-deposit taking NBFC” headquartered in the southern Indian state of Kerala and with its corporate office in New Delhi.
Operating history of Muthoot Finance has evolved over a period of 74 years since M George Muthoot (the father of our Promoters) founded a gold loan business in 1939 under the heritage of a trading business established by his father, Ninan Mathai Muthoot, in 1887.
Muthoot Finance provides personal loans secured by gold jewellery, primarily to individuals who could not access formal credit within a reasonable time, or to whom credit may not be available at all, to meet their personal or business purposes.
Company is listed on both National Stock Exchange of India and Bombay Stock Exchange.
