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.
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.
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.
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.
| Topic | Details |
|---|---|
| Why in news? | RBI approved Tata Communications’ sale of its payment arm, TCPSL, to Australian fintech Findi’s subsidiary, TSI, for ₹330 crore, with ₹75 crore contingent on interchange rate adjustments. This adds 4,600 Indicash ATMs to Findi’s existing 7,500 ATMs, expanding its Indian market presence. |
| Buyer | Findi (Australian fintech) via Transaction Solutions International (TSI) |
| Seller | Tata Communications |
| Company Sold | Tata Communications Payment Solutions Ltd (TCPSL) |
| Deal Value | ₹330 crore + ₹75 crore (subject to interchange rate changes) |
| Current ATM Network of TSI | 7,500 ATMs |
| ATMs Acquired (Indicash) | 4,600 ATMs |
| Total ATMs Post-Acquisition | 12,000+ ATMs |
| Tata Communications’ Reason for Sale | Strategic focus shift towards core business areas |
| RBI’s Role | Approved the transaction |
| Key Banks TSI Partners With | SBI, PNB, Central Bank of India, HDFC Bank |
| Country of Buyer | Australia |
| Tata Communications’ CFO | Kabir Ahmed Shakir |
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