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White Label Atm – Objectives, Background & Objectives


White Label Atm: Hi, Guys. Today I will be sharing some exciting information on the topic of White Label Atm. Please go through the article and enjoy reading it.

White Label Atm – Objectives, Background & Objectives

The Automated Teller Machines that are ATMs set up, owned, and operated by the non-bank existence are called White Label ATMs. It provides banking services to the customers of banks in India. 

It is on the cards like Debit or Credit or Prepaid, which the banks issue the Non-bank existence that has set up. To own and operate the ATMs are called White Label ATM Operators. 

The White Label ATM Operators’ role is restricting in the area to the asset of transactions of all banks’ customers. Establish the technical connectivity with the existing authorized with the shared ATM Network Operators or Card Payment Network Operators Tata Communications Payment Solutions Limited, called TCPSL.

 It is the first company licensed by the Reserve Bank of India to open White Label ATMs. It got launched under the brand name called Indicash on the year 27 June 2013. As of the year 31.2.2015, 11706 WLAs that is have set up in India.

The Background and Objectives

The operated by largely automatic equipment is calledTeller Machines. ATMs allow the facility to approach the depositor’s accounts to authorize cash and carry out the other financial and non-financial transactions.

Without actually visiting their bank branch, ATMs have expanded the banking scope to anytime, anywhere banking. Through able to exchange and make use of the information platforms. 

One bank issued these cards that can operate through the ATMs, which the other banks set up.

Importance to White Label ATM is the only bank. Which were provide by the Reserve Bank of India to set up the ATMs; however, ATMs have become the means for financial action.

 It has used for the delivery of a wide variety of banking services to customers. But there has been around 23 to 25% figure growth in the number of ATMs. 

There the action of bringing resources into effective action has been mainly in Tier I & II centers to expand ATMs’ reach in Tier III to VI centers. The Non-banks existence were also allowed to set up the ATMs since the year 20 June 2012.

The Operational Aspects of White Label Atm

It was incorporated the Non-bank existence in India under the Companies Act of 1956. These are allowed to operate White Label ATMs. In the year September 2015, the Government authorizes Foreign Direct Investment up to 100%. 

Under the automatic route. Before that, foreign investment in the White Label ATMs. It was being allowed only through the government approval route.

The Non-bank existence is permitted to set up White Label ATMs in India. After getting authorization from RBI under the Payment and Settlement Systems that is PSS Act of 2007. 

Such non-bank existence should have a minimum net worth of around 100 crores as per the latest financial year’s audited balance sheet to maintain at all times.

But the White Label Atm operator is existence to receive a fee. From the banks for the use of ATM resources by the bank’s customers. White Label ATMs are not officially allowed to charge the bank customer directly to benefit White Label ATMs. 

The process of deposits at the White Label ATMs is not permitted. WLAN allowed to display the advertisements offers value-added services as per the force’s regulations from time to time.

The Cash Management at the White Label Atm is the responsibility of the Sponsor Bank. Those may, if needed, make necessary arrangements with the other banks. 

White Label Atm Operational Aspects

For servicing the cash requirements at various places. WLAO is officially allowed to have more than one Sponsor Bank. But the cash would be owned by the WLAO.

The responsibility of making sure the quality and genuineness of cash loaded at like WLAs. It would be that of the Sponsor bank. At no point in time, the WLAO or his agents have entered the money at the WLAs.

Taking over of ATMs that have operated by the banks is also not permitted. Based on the number of WLAs which are installing in the starting years. 

Either a 3:1 or 2:1 or 1:1 ratio is advising for setting up WLAs in Tier III to VI centers. As against each WLA installed I to II centers, the principal is responsible for setting customers’ right grievances. 

Those are relating to failed transactions at WLAs confer with the Issuing Bank. However, the Sponsor Bank will give necessary support in this condition.

White label ATM Operators

We are ensuring that the WLAO makes available appropriate records and information to the Issuing Bank. For this purpose, the Sponsor Bank should have the necessary arrangements with the WLAO surviving directives of the RBI on the timelines for resolution of complaints of failed ATM transactions. 

At bank-operated ATMs would also apply to transactions at the WLAs. For any delay in resolution of such complaints regarded to the Sponsor Bank or the WLAO. It is resulting in the payment of penalty to the customer by the Issuing Bank.

Directives of RBI, the Issuing Bank shall be recognized as a loss by the Sponsor Bank. The Sponsor Bank may have cooperative agreements with the White Label Atm Operator for recovery of such amounts.

So, this is vital information on the topic of White Label Atm. Here I have mentioned the White Label Atm’s Meaning, Background, and the Operational Backgrounds.

If Queries or Questions is persisting then, please feel free to comment on the viewpoints.

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