RBI Clears Tata Communications’ Payment Arm Sale to Findi

The Reserve Bank of India (RBI) has approved Tata Communications’ plan to sell its entire stake in Tata Communications Payment Solutions Ltd (TCPSL) to Transaction Solutions International (TSI), the Indian subsidiary of Australian fintech company Findi. The deal, first announced in November 2024, is valued at ₹330 crore, with an additional ₹75 crore contingent upon interchange rate adjustments.

What Does This Acquisition Mean for Findi?

This acquisition significantly bolsters Findi’s presence in India’s financial services sector, particularly in underbanked regions. By integrating TCPSL’s assets, Findi aims to enhance its ATM network and digital payment services, moving closer to its goal of becoming a full-fledged payments bank.

How Will TSI’s Operations Change Post-Acquisition?

TSI currently operates over 7,500 brown-label ATMs in partnership with major banks such as State Bank of India, Punjab National Bank, Central Bank of India, and HDFC Bank. The acquisition adds more than 4,600 operational Indicash ATMs to TSI’s network, with plans to deploy an additional 3,000 ATMs. This expansion will increase TSI’s total ATM count to over 12,000, solidifying its position as one of the largest ATM operators in Asia.

Why Did Tata Communications Decide to Divest TCPSL?

Tata Communications’ Chief Financial Officer, Kabir Ahmed Shakir, stated that the payments solutions sector operates under different dynamics compared to the company’s core offerings. This strategic divestment allows Tata Communications to focus on its primary areas of expertise, aligning with its long-term objectives while unlocking value and improving profitability.

Summary of the news