White label ATMs set to drive ATM spread in tier III to VI centres: Karad
New Delhi: White Label ATMs (WLAs) are expected to drive ATM spread across India with a greater focus on tier III to VI centres, said Union Minister of State for Finance, Bhagwat Kisanrao Karad, in a written reply in Rajya Sabha on Tuesday. To expand ATM access in the country, the Reserve Bank of India (RBI) has granted permission to non-bank entities to establish, own, and operate White Label ATMs (WLAs) nationwide.
This move is aimed at enhancing banking services‘ reach, especially in smaller towns and rural areas, and promoting financial inclusion. Karad said that WLAs offer banking services to customers through cards issued by various banks, such as debit, credit, or prepaid cards.
Apart from cash withdrawals, these ATMs provide an array of services, including account information, cash deposits, bill payments, mini/short statement generation, PIN changes, and requests for cheque books. To ensure the viability and seamless functioning of WLAs, the RBI has undertaken several measures.
Notably, through a circular issued on 30 December 2016, the central bank permitted White Label ATM operators (WLAOs) to source cash from retail outlets, addressing the challenges related to cash availability. In another significant move, the RBI, through a circular on 7 March 2019, encouraged non-bank players‘ participation in the ATM industry by granting WLAOs several privileges.
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