WHITE LABEL ATMs

 White Label ATMs are ATMs that are owned and operated by non-banking entities. ATMs operated under this business model allow customers to use them for banking transactions regardless of the bank they have an account with.

RBI approved the operation and inclusion of WLA ATM by non-banking organisations under the Payment and Settlement Systems Act of 2007. It was introduced to expand India’s ATM network, especially in semi-urban and rural areas. 

White Label ATM companies work with banking networks to enable bank customers to use banking services like withdrawing funds, paying bills and depositing cash. White Label ATM (WLA) operators charge card-issuing bank fees to provide this facility to the bank’s clients.  

The transaction process in White Label ATM operators consists of a lending bank, a sponsor bank that handles settlements and an ATM network provider. The Sponsor bank provides the cash facility for the White ATM.

Services at a white label ATM:

• Dispensing cash as per your requirement
• Depositing cash
• Checking your account information
• Making regular bill payments
• Generating a mini or short statement 
• Changing your PIN
• Requesting for a new cheque book

Benefits of White Label ATMs:

• Customers benefit from White Label ATMs since they eliminate the need to visit a bank branch on a regular basis
• ATMs are available 24 hours a day, seven days a week, including holidays
• Banks benefit from this because they do not have to maintain a huge staff/office (compared to a system without ATMs). It lowers their branch-operational costs
• Financial inclusion of rural, semi-urban, and low-income people
•  It allowed ATM cards to be issued by any bank that can be used at White Label ATMs
• WLA ATM also provides mobile recharge, energy bill payments, and other value-added services

 Limitations of White Label ATMs:

• The issue of unsuccessful transactions is a key source of concern. In the event of a dispute, the dispute resolution method will include three entities, namely the WLA operator, the WLA operator’s sponsor bank, and the customer’s bank and will typically take a lengthy time
• Customers will be discouraged by the cost issue, as they will be obliged to pay a price to use the White Label ATMs, as only a limited number of free transactions are permitted on the WLAs
• White label ATMs’ financial viability is questioned because of their low interchange charge and hefty operational expenses
• If there is a bank-managed ATM in the same area as a WLA ATM, the White Label ATMs may not be able to generate a profit