What is White Label ATM: Example, Benefits, How to Apply

An Automated Teller Machine (ATM) is one of the greatest products of modern technological advancements which has made life easier by making cash withdrawals faster. It is a key foundation of the modern banking system for managing cash withdrawals and deposits.

Even though banks present in the country are responsible for managing most of the ATMs, there is a unique category of ATMS that are not managed by banks. This category of ATMs is called White Label ATMs.

White Label ATM Meaning?

White Label ATMs are the kinds of ATMs that are managed and operated by some non-banking entities as per the mandates generated by the Reserve Bank of India (RBI). Under this kind of business model, you can operate these ATMs for banking transactions irrespective of the bank account you have.

Under the Payment and Settlement Systems Act 2007, the Reserve Bank of India has approved the operation and inclusion of White Label ATMs in the country, managed by non-banking organisations. Hence it was introduced primarily to expand the ATM networks in rural and semi-urban areas.

With White Label ATMs, you can enjoy banking services like depositing cash, withdrawing funds, paying bills etc. However, you must remember that the operators of White Label ATMs usually charge a minor fee for issuing cards and providing these facilities to the customers.

White Label ATM Example

The following points are some examples of White Label ATM companies that operate such ATMs in rural and semi-urban areas:

• India 1 Payments (BTI Payments Private Limited)
• Indicash. It is the largest White Label ATM network in the country that is responsible for uberisation of ATMs.
• Tata Communication Payment Solutions Limited.
• Hitachi Payment Services Private Limited.
• Vakrangee Limited

First White Label ATM in India

The first White Label ATM in India is Indicash. It is not only the first White Label ATM established but the largest White Label ATM network in the country that is responsible for the uberisation of ATMs.

Established by Tata Communication Payment Solutions Limited in Chandrapada, which is a small village located in the Thane district of Maharashtra on 27th June 2013.

White Label ATM Operators in India

According to the mandates as generated by the Reserve Bank of India, White Label ATMs have been set up. These ATMs accept debit cards and provide the first three to five services free, based on their location.

However, there are four White Label ATM operators that are authorised by the RBI as of 2021. These include the following:

How to Apply for White Label ATM?

Only non-banking entities can apply for a White Label ATM for a specific location. However, non-banking entities opting to apply for the same must have a total worth of 100 Crores to be eligible to get a White Label ATM licence.

Apart from this, their primary objective in applying for a White Label ATM must be the development and enhancement of the rural and semi-urban areas by spreading ATMs in their localities.

Nevertheless, to apply for a White Label ATM, you must write an application letter to the NBFC or Non-Banking Financial Company informing you about the requirement. If your area meets the parameters, the application will proceed further.

Benefits of White Label ATM

The below points showcases the various benefits White Label ATMs offer to its users:

• Customers need not visit the bank branches on a regular basis since they can use the White Label ATMs for their banking engagements.
• White Label ATMs shall be available to the customers for 24 hours every day, including the holidays.
• White Label ATMs also help in lowering the operational costs of the bank branches since they would not have to face a huge crowd in the bank.
• These ATMs accelerate the financial inclusion of semi-urban, rural and low-income citizens of the country.
• White Label ATMs accept all kinds of debit cards regardless of their issuing banks.
• Customers can enjoy several services like energy bill payments, mobile recharging, and other related services.

Limitations of White Label ATM

Even though the White Label ATMs are beneficial for the citizens of India, there are a few limitations it, which include the following:

• There remains a possibility of unsuccessful transactions like all ATMs. In case any transaction disputes occur, there would be three entities required to resolve such issues which include the White Label operator, the customer's bank and the White Label operator's sponsor bank. Hence, the resolution process can be lengthy and time-consuming.
• White Label ATMs permit only a limited number of transactions for free. After this, customers need to pay a price to use the services provided by it. This might be discouraging for some individuals.
• White Label ATMs involve low interchange charges and high expenses of operating them. Hence its viability can come under unavoidable questions.
• In case a White Label ATM is present in the same area as a bank-managed ATM, it is quite common that the White Label would not be able to generate much profit.

Difference Between White Label ATM and Brown Label ATM

The following table showcases the difference between White Label ATMs and Brown Label ATMs:

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4. SBI ATM Withdrawal Limit For Different Types Of SBI Debit Cards
5. SBI Debit Card Charges