The RBI has recently decided to permit non banking entities to set up or start ATMs. These types of ATMs are called as White Label ATMs (WLAs). The important guidelines issued by the RBI which are useful for our visitors who are preparing for bank exams, are as under:
- Non-bank entities should have a minimum net worth of Rs 100 crore as per the latest financial years audited balance sheet, which is to be maintained at all times.
- Non-bank entities that intend setting up, owning and operating ‘White Label ATMs’ (WLAs) would service customers of banks in India, based on the cards (debit/ credit/prepaid) issued by banks, the RBI said.
- Non-bank entities will have to obtain authorization from the RBI under the Payment and Settlement Systems Act 2007 within four months from the date of issuance of these guidelines.
Meaning of White Label ATM: White Label ATM or White Label Automated Teller Machines or WLAs inIndia will be owned and operated by Non Bank entities. From such White Label ATM customer from any bank will be able to withdraw money, but will need to pay a fee for the services. These white label automated teller machines (ATMs) will not display logo of any particular bank and are likely to be located in non traditional places.