Question

What is White label ATM?
1. ATM set up by Commercial Banks
2. ATM set up by Scheduled Banks
3. ATM set up by Non-Banks.
4. ATM Franchise set up by Foreign Banks
5. None of these.

Answer 1

Correct Answer - Option 3 : ATM set up by Non-Banks.

The Correct answer is ATM set up by Non-Banks.

White Label ATM:

• ATMs set up, owned, and operated by non-banks are called white label ATMs.
• They are authorized under the Payment and Settlement Systems Act, 2007, by the Reserve Bank of India.
• Using these ATMs is similar to using an ATM of a bank other than the bank where you have your account.
• ATM service providers have been allowed to start ATMs that can increase the penetration and availability of ATMs.
• RBI has allowed these ATM service providers to take some additional measures that could improve their financial viability.
• There are eight white label ATM operators in the country.
• White label ATMs were not allowed to accept cash deposits.
• They can also offer bill payment services through their ATMs.
• There are also brown-label ATMs that are owned by these operators but are leased out to banks. Such ATMs operate like the ones belonging to the bank itself, including having the bank’s branding.
• White label ATMs do not charge any extra fees for transactions.