RBI Eases Business Guidelines for White Label ATMs

The Reserve Bank of India (RBI) has eased business guidelines for white label ATMs. These new guidelines increase the avenues of revenue earning for the white label ATMs.

What are White Label ATMs?

Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called White Label ATMs. These White Label ATMs provide banking services to the customers of banks on the basis of the cards (debit/credit/prepaid) issued by banks. The non-bank entities which set up, own and operate ATMs are called White Label ATM Operators. Their role is confined to enabling the transactions of all banks customers by establishing technical connectivity with the existing authorized, shared ATM Network Operators or Card Payment Network Operators.
These White Label ATM operators are entitled to receive a fee from the banks for the use of ATM resources by the bank’s customers and they are not permitted to charge bank customer directly for the use of WLAs.

Fact Box
At present there are eight White Label ATM operators in the country – AGS Transact Technologies Ltd, BTI Payments Pvt Ltd, Hitachi Payment Services Pvt Ltd, Muthoot Finance Ltd, RiddiSiddhi Bullions Ltd, SREI Infrastructure Finance Ltd, Tata Communications Payment Solutions Ltd, and Vakrangee Ltd.

New Guidelines

  • The White Label ATM Operators are now allowed to buy wholesale cash, above a threshold of 1 lakh pieces (and in multiples thereof) of any denomination, directly from the Reserve Bank and currency chests against full payment.
  • They are also allowed to source cash from any scheduled bank, including cooperative banks and regional rural banks.
  • The White Label ATM Operators can also offer bill payment and Interoperable Cash Deposit services, subject to technical feasibility and certification by the National Payments Corporation of India (NPCI).
  • The White Label ATM Operators can also display advertisements pertaining to non-financial products or services anywhere within the WLA premises, including the ATM screen, except the main signboard by ensuring that the advertisements running on the screen disappear once the customer commences a transaction.
  • Banks can issue co-branded ATM cards in partnership with the authorised White Label ATM operators and may extend the benefit of ‘on-us’ transactions (where the customer or cardholder and ATM are of the same bank) to their WLAs as well.

RBI has stated that all guidelines, safeguards, standards, and control measures applicable to banks relating to currency handling and cyber-security framework for ATMs, shall also be applicable to WLA operators.


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