Published: 14th Mar, 2019
Context
The Reserve Bank of India (RBI) has conducted an assessment of White Label ATM (WLA) operations across the nation.
About
White Label ATMs
Non-bank entities establish, own, and operate Automated Teller Machines (ATMs) dubbed "White Label ATMs" (WLAs).
The recent guidelines are as follows:
- To increase the profitability of WLAs, it has been agreed to allow WLA Operators to acquire wholesale cash in excess of 1 lakh pieces (and multiples thereof) of any denomination directly from the Reserve Bank (Issue Offices) and Currency Chests for the entire amount.
- The central bank has also permitted the operators to obtain funds from any regulated bank, including Cooperative Banks and Regional Rural Banks.
- Operators can now provide bill payment and Interoperable Cash Deposit services, subject to technical viability and approval by the National Payments Corporation of India.
- Advertising for non-financial items and services is permitted anywhere on the WLA grounds, including the WLA screen, with the exception of the main signboard. However, the bank stated that it will ensure that the adverts displayed on the screen vanish once the user initiates a transaction.
- The permission to WLA Operators to source cash from retail outlets, accorded vide circular dated December 30, 2016, stands repealed.
- Banks may issue co-branded ATM cards in partnership with authorized WLA Operators while also providing 'on-us' transactions to their WLAs.
- All rules, protections, standards, and control mechanisms applicable to banks for money handling, as well as the ATM cyber-security framework, should also apply to WLA Operators.
- This directive is issued under Section 10(2) and Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
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