RBI concept: ATM/White Label ATM #1

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Q.1. What is an Automated Teller Machine (ATM)?

Ans 1. 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.

Q.2. What are White Label ATMs (WLAs)?

Ans 2. ATMs set up, owned and operated by non-banks are called White Label ATMs. Non-bank ATM operators are authorized under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India.


Q.3. What is the difference between ATM and WLA (White Label ATM)?

Ans 3.

i) In White Label ATM scenario, logo displayed on ATM machine and in ATM premises pertain to WLA Operator instead of a bank. However, for a customer, using WLA is just like using the ATM of other bank (bank other than card issuing bank).

ii) Acceptance of cash deposits at the WLAs is not permitted at present.

Q.4. What has been the rationale of allowing non-bank entities for setting up of WLAs?

Ans 4. The rationale of allowing non-bank entity to set up White Label ATMs has been to increase the geographical spread of ATM for increased / enhanced customer service.

Q.5. What type of cards can be used at an ATM/WLA?

Ans 5. The ATM/ATM cum debit cards, credit cards and open prepaid cards (that permit cash withdrawal) issued by banks can be used at ATMs/WLAs for various transactions.

Q.6. What are the services/facilities available at ATMs/WLAs?

Ans 6. In addition to cash dispensing, ATMs/WLAs may offer many other services/facilities to bank customers. Some of these services include:

  • Account Information
  • Cash Deposit (Acceptance of deposits are not permitted at WLAs)
  • Regular Bills Payment (not permitted at WLAs)
  • Purchase of Re-load Vouchers for Mobiles (not permitted at WLAs)
  • Mini/Short Statement
  • PIN change
  • Request for Cheque Book.

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