The Reserve Bank of India relaxes the business guidelines for white label ATMs allowing them to redirect wholesale cash from the central bank.
Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called “White Label ATMs” (WLAs). They provide the banking services to the customers of banks in India, on the basis of the cards (debit/credit/prepaid) issued by banks.
Non-bank entities that set up, own and operate ATMs are called “White Label ATM Operators” (WLAO). Tata Communications Payment Solutions Limited (TCPSL) is the first company authorized by Reserve Bank of India (RBI) to open White Label ATMs in the country. It got launched under the brand name ‘Indicash’ on 27 June 2013. As on 31.2.2015, 11706 WLAs have been set up in India. The WLAO’s role is confined to acquisition of transactions of all banks’ customers by establishing technical connectivity with the existing authorized, shared ATM Network Operators / Card Payment Network Operators.
The RBI also permitted WLA operators to buy cash from any schedule bank, which includes rural and cooperative banks, its statement read on Monday.aaaaaa
On a review of operation of WLAs and representations received from stakeholders, based on the feasibility of WLAs, it has been decided to allow them to buy wholesale cash, above a threshold of 1 lakh pieces (and in multiples thereof) of any denomination, directly from the Reserve Bank and currency chests against full payment, the RBI said in a notification.
They are also being allowed to source cash from any scheduled bank, including cooperative banks and regional rural banks and to offer bill payment and Interoperable Cash Deposit services, subject to technical feasibility and certification by the National Payments Corporation of India (NPCI).
RBI has also allowed WLA operators to display advertisements pertaining to non-financial products or services anywhere within the WLA premises, including the ATM screen, except the main signboard.
The RBI also said that WLAs ensure that the advertisements running on the screen disappear once the customer commences a transaction.
Among others, the RBI has revoked its earlier order of permitting WLA operators to source cash from retail outlets.
RBI also stated that banks may issue co-branded ATM cards in partnership with the authorised WLA operators and may extend the benefit of ‘on-us’ transactions to their WLAs as well.
The RBI concluded by saying that 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 the WLA operators.
