What changed
RBI clarified that non-bank entities seeking authorisation to set up White Label ATMs can infuse additional capital after their balance sheet has been audited to meet the net worth requirement of Rs 100 crore. Earlier, queries had arisen whether post-audit capital infusion would be accepted for this purpose.
What it means for you
This gives non-bank WLA applicants flexibility to raise capital after their audited financials are finalised, without waiting for the next audit cycle. Banks and lenders dealing with such entities should note that the net worth certification can now be based on a CA certificate of infusion rather than only audited balance sheet figures.
What you must do
- Verify that non-bank WLA applicants submit a CA certificate confirming additional capital infusion to meet the Rs 100 crore net worth criterion.
- Accept certificates from the entity's existing auditor who audited the last balance sheet or from a CA who conducted a limited review of the last quarter/half-year accounts.
- Update internal due diligence checklists to reflect this clarification when processing WLA-related applications or partnerships.
Who it affects
Non-bank entities applying for White Label ATM authorisation, Scheduled Commercial Banks including RRBs, Urban Co-operative Banks and State/District Central Co-operative Banks, Authorised ATM and card payment network operators
Can a non-bank entity infuse capital after its balance sheet is audited to meet the Rs 100 crore net worth requirement?
Yes, RBI has clarified that such post-audit capital infusion is allowed, provided the entity submits a certificate from a Chartered Accountant confirming the additional capital has been infused to meet the net worth criterion.
Who can issue the certificate for capital infusion?
The certificate can be issued either by the entity's existing Chartered Accountant who audited the last balance sheet, or by a CA who conducted a limited review of the accounts for the last quarter or half-year.