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In a bid to enhance the viability of white-label ATMs (WLAs), the Reserve Bank of India has allowed white-label ATM operators (WLAOs) to buy wholesale cash from the RBI and currency chests, source cash from any scheduled bank, and display advertisements pertaining to non-financial products/services within the WLA premises, among others.
Co-branded ATM cards
Further, the RBI said banks can issue co-branded ATM cards in partnership with the authorised WLAOs, and may extend the benefit of ‘on-us’ transactions (where the customer or cardholder and ATM are of the same bank) to their WLAs as well.
Following this liberalisation, the permission to WLAOs to source cash from retail outlets, accorded in December 2016, has been withdrawn.
Non-bank entities that set up, own and operate ATMs are christened ‘white label ATM operators’ (WLAOs), and such ATMs are called white label ATMs (WLAs).
The central bank elaborated that WLAOs can buy wholesale cash, above a threshold of one lakh pieces (and in multiples thereof) of any denomination, directly from its issue offices and currency chests against full payment.
These operators can also source cash from any scheduled bank, including cooperative banks and regional rural banks.
WLAOs can offer bill payment and interoperable cash deposit services, subject to technical feasibility and certification by the National Payments Corporation of India (NPCI).
The operators can display advertisements pertaining to non-financial products/services anywhere within the WLA premises, including the WLA screen, except the main signboard.
They have to ensure that the advertisements running on the screen disappear once the customer commences a transaction.
The central bank said all guidelines, safeguards, standards, and control measures applicable to banks relating to currency handling and cyber-security framework for ATMs, shall also be applicable to WLA operators.
Currently, there are eight WLAOs in the country – AGS Transact Technologies Ltd, BTI Payments Pvt Ltd, Hitachi Payment Services Pvt Ltd, Muthoot Finance Ltd, RiddiSiddhi Bullions Ltd, SREI Infrastructure Finance Ltd, Tata Communications Payment Solutions Ltd, and Vakrangee Ltd.
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