Q. Consider the following Statement(s) regarding ‘White-label ATMs’
White label ATMs refer to the machines which are owned by private operators seeking to earn a rent from banks for transactions carried out by their customers.
The investment, installation and maintenance of a White label ATM is by a private operator but the licence and branding is of a commercial bank.
Which of the above Statement(s) is/are correct?
Answer: Only 1
Notes: Corporate entities have been allowed to set up ‘white label’ automated teller machines (ATMs) under new norms issued by the Reserve Bank to grow the ATM network in the country. However, there is a stiff entry barrier of Rs 100 crore networth and high investment targets, ranging from 9,000 to 25,000 machines, over a three-year period.
White label ATMs refer to the machines which are owned by private operators seeking to earn a rent from banks for transactions carried out by their customers.
At present there are around one lakh ATMs in the country, most of which are owned by banks. There is also a sizeable number of
‘Brown Label’ machines – ATMs where the investment, installation and maintenance is by a private operator but the licence and branding is of a commercial bank.
