All about ATM (Automated Teller Machine)

White Label ATM

TELLER in Banks: An individual in the bank who deals with the masses like:

  • Collection of check/vouchers
  • Make payment of it
  • Withdrawing money
  • Depositing money

 ATM (Automated Teller Machine):

  • Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.

WLA (White Label ATM’s)

  • ATM’s set up, owned and operated by non-banks are called White Label ATM’s. Traditionally, Bank ATM’s have their respective Bank logo, like SBI ATM and all. But WLA’s don’t have this logo, as they are set up by non-banking entities.
  • Any non-bank entity with the net worth of Rs.100cr can apply for White Label ATM’s.
  • Recently, GOI allowed 100% FDI in WLA’s.
  • ‘Indicash’ was the first White label ATM set up in India by the Tata Communication Payment Solutions Limited

White Label ATM


The objective of allowing non-banking entities to set up WLA’s has been to increase the geographical spread of ATM for increased/enhanced customer service.

Services / Facilities available at ATM’s/WLA’s:

  • Account information
  • Cash Deposits (Acceptance of Deposits are not permitted at WLA’s)
  • Regular Bills Payment (not permitted at WLA’s)
  • Purchase of Re-load Vouchers for Mobiles (not permitted at WLA’s)
  • Mini/ Short Statement
  • PIN change
  • Request For Check Book

Difference between Brown Label ATM’s and White Label ATM’s:

                    Brown Label ATM’s                  White Label ATM’s
1.     When Banks outsourced the ATM operations to a third party.When ATMs are owned and operated by non-bank entities but they are not doing ‘outsourcing-contract’ from a particular bank.
2.     The Private Company owns and operates the ATM.Same.
3.     The Bank provides the cash for the ATM, which outsourced the contract.Sponsor Bank provides the cash.
4.     ATM has the logo of the respective Bank.White Label ATM’s don’t have any logo of the bank, not even the sponsor bank.
5.     RBI is not involved directly in this, as the banks have outsourced the contract.RBI is directly involved in this because these White Label Companies have to get the license from RBI to run a business.

Some Important Points:

  • First Bank to introduce ATM in India: HSBC, in 1987 (Mumbai).
  • The first non-banking entity to introduce WLA in India: Tata Communications Payment Solutions Limited (Indicash).
  • ICICI was the first Bank to provide Mobile ATM.
  • India’s first “talking” ATM launched by Union Bank of India (UBI) for visually impaired was launched in Ahmedabad (Gujarat).
  • The National Payments Corporation of India (NPCI) launches India’s first rural bank ATM card with a regional rural bank in Varanasi. The card is called RuPay Gramin Card, first Gramin ATM card with the Kashi Gomti Samyut Gramin Bank in association with Union Bank of India.
  • India’s first non-bank owned ATM opens in Maharashtra: Tata Communication Payments Solutions Ltd, a wholly owned subsidiary of Tata Communications Ltd, which unveiled the ATM at Chandrapada in Thane district, plans to roll out 15,000 such ATM’s by 2016.
  • Private sector lender Federal Bank announced its tie-up with Tata Communications Payment Solutions Ltd as the sponsor bank to deploy White Label ATM’s (WLA).

 

References:
Investopedia

rbi.org
mrunal.org

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