GK For Competitive Exams (Bank,SSC,Others) PART 92 #GACA #CE
RBI has allowed four non-bank entities – Tata Communications Payment Solutions, Muthoot Finance, Prizm Payment Services and Vakrangee Ltd to set up White Label ATMs (WLAs) in the country.
Understanding the need to take banking to rural and under-penetrated areas of the country, the Reserve Bank of India (RBI) released guidelines in June 2012 for the introduction of white label ATMs (WLA).
These are essentially ATMs that are owned and operated by non-banking companies and do not display any bank’s branding.
They do have a sponsor bank that provides the cash for ATM Operations but it does not even have the logo of sponsor bank.
WLAs serve customers from all banks and will be interconnected with the entire ATM network in the country. The guidelines specified focuses on increasing rural accessibility of ATMs. Customers from any bank can withdraw cash from such white-label
ATMs, with similar functioning as a bank ATM.
In terms of previous rules, only banks were permitted by Reserve Bank of India (RBI) to set up ATMs as extended cash delivery channels. But now with NBFCs (Non Banking Financial Companies) stepimng into it, the reach of ATMs as extended cash delievery channels is expected to get widened.
TATA introduced the First White Label ATMs in the country with name ‘INDICASH’.