White Label ATM (WLA) or Non-banking ATMs can now accept international cards and also source cash supply from other than banks.
The Reserve Bank of India on Friday provided a breather to WLA operators by allowing them to accept international credit/debit/prepaid cards.
“The cards issued under card payment network schemes (authorized under the PSS Act 2007) will be allowed for the purpose. The WLA operators have to ensure that they have established technical connectivity with the respective card network operators either directly or through their sponsor banks,” RBI said in a notification based on the review of the operations of WLAs.
However, in the case of cards issued under any other card scheme, the routing and settlement should take place based on the bilateral arrangement put in place by the existing authorised networks.
The RBI also permitted the facility of Dynamic Currency Conversion (DCC) for the use of international cards at WLAs. The currency conversion rate will only be obtained from authorised dealer bank. WLAO will be restricted to converting the amount requested by the international cardholder (based on the DCC option selected by him) to his home currency using a Base Exchange Rate provided by the AD bank.
Cash sourcing
In addition, RBI has enabled delinking of cash supply from sponsor banks. WLA operators may now tie up with other commercial banks for cash supply at WLAs. Earlier, the cash supply had to be managed only through a sponsor bank which limited the scope of cash management for the operators.
The RBI added that while the cash would be owned by the WLA operators, the responsibility of ensuring the quality and genuineness of cash loaded at such WLAs would be that of the cash supplier bank and that a suitable Service Level Agreements (SLA) may be drawn up between the operators and the cash supplier bank for the quality of notes.
Further, the WLA operators who have been authorised and have commenced operations are required to intimate RBI regarding commencement of the services, the banking regulator added.
RBI has so far authorised seven companies to set up WLAs -- Tata Communications Payment Solutions, Prizm Payment Services, Muthoot Finance, Vakrangee, BTI Payments, Srei Infrastructure Finance, and RiddiSiddhi Bullions Ltd.