WHITE LABEL ATMS (Syllabus: GS Paper 3 - Infrastructure)

Context:  The Reserve Bank of India (RBI) has apprised that in order to drive ATM penetration in the country with a greater focus on Tier III to VI centres, non-bank companies have been permitted to set up, own and operate White Label ATMs (WLAs) in the country.

White Label ATMs (WLAs)

• ATMs set up, owned and operated by non-banks are called WLAs. 
• Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India (RBI).
• WLAs provide banking services to the customers of banks in India, based on the cards (debit/credit/prepaid) issued by banks. 
• In addition to dispensing cash, WLAs may offer many other services / facilities which inter-alia include:
• Account Information
• Cash Deposit
• Regular Bill Payment
• Mini / Short Statement Generation
• PIN Change
• Request for Cheque Book