Important Points to Know about White Label ATMs

    Important Points about White Label ATMs
    Important Points to Know about White Label ATMs:
    Important points that we have to know about White Label ATMs was given here, which will be more helpful for the candidates those who are preparing for the upcoming exams.

    White Label ATMs:

    1). WhenAutomated Teller Machines (ATM) are owned and operated by private non-banking companies they are known asWhite Label ATMs

    2).Reserve Bank of India (RBI) has given permission to non-banking companies with minimum net worth ofRs. 100 croreto apply for setting up White Label ATMs
    ·        As perRBI norms, non-bank company that owns white labeled ATMs should provide banking services to customers based on cards issued by banks

    3). RBI issued guidelines for white label ATMs in2012

    4). In2013RBI started issuing license for setting up White Label ATMs to non-bank companies

    5).Tata Communications Payment Solutions Ltd. – 1st company to receive license from RBI to open White Label ATMs, they started their business under the brand name of‘Indicash’

    6).The following organizations plays an important role in the functioning of the White Label ATMs
    ·        RBI– it provides license to open White Label ATMs under the Payment and Settlement Systems Act, 2007
    ·        Non-Bank Company or theWhite Label ATM Company
    a.   Rents the venue to set up the ATM
    b.   Maintains and services the machine
    ·        Sponsor Bank
    a.   Loads cash in the White Label ATM
    b.   Ensures that counterfeit currency notes are not circulated through these ATMs
    ·        Payment Network Operator (PNO) provides technical connectivity in the system. Some examples of PNOs are as follows
    a.   Visa
    b.   Mastercard
    c.   National Financial Switch (NFS) ofNational Payment Corporation of India (NPCI)

    7). Features of a White Label ATM are as follows
    o  Any customer belonging to any bank can carry out transactions in White Label ATMs
    o  Every month the 1st 5 transactions are free of cost
    o  Users can withdraw a maximum amount ofRs. 10,000 per transaction
    o  Value added services like mobile recharge and utility bill payments can also be done

    8).On 9th September 2015, Union Cabinet approved 100%Foreign Direct Investment (FDI) under the automatic route forWhite Label ATM Operations (WLAO)

    9). Before the approval of the government FDI in WLAO was allowed through government approval route which was time consuming leading to delay in projects

    10).This approval will make FDI inflows in WLAO easier thus promoting financial inclusion in the country includingPradhan Mantri Jan Dhan Yojana(PMJDY)

    11).Some importantnon-bank companies that own and operate White Label ATMs in India are as follows
    ·        Muthoot Finance
    ·        Srei Infrastructure
    ·        Vakrangee Software
    ·        Prizm Payments
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