With an aim to promote financial inclusion in India, the cabinet approved 100 per cent Foreign Direct Investment (FDI) under the automatic route in White Label ATMs.
Till now, FDI was allowed only under the government approval route, which was a hindrance as it delayed the process and completion of projects.
The Automated Teller Machines (ATMs) which will be set up, owned and operated by non-banks will be called as White Label ATMs (WLA).
By setting up White Label ATMs by non-bank entities will increase the geographical spread of ATM and enhance the customer service.
Also read: 8 Smart Ways to Avoid ATM Charges
Here are 7 smart things to know about White Lable ATMs
1. White Label ATMs are very similar to ATMs in most of the process. However, acceptance of cash deposits at the WLAs is not permitted at present.
2. At the White Label ATMs, we will not come across bank logo like that of SBI or ICICI Bank or any other scheduled bank. The logo displayed on the ATM machine will have the logo pertaining to WLA Operator instead of a bank.
3. Individuals can use their ATM-cum debit cards, credit cards and open prepaid cards which are permitted to for cash withdrawal issued by banks.
Also read: 10 Must Know Things When Using ATM
4. One can also lodge complaint regarding failed or disputed transactions as the WLAs, will display all the contact number of officials/toll-free numbers/ helpline numbers.
5. Cash Management will be the responsibility of the Sponsor Bank, who can make necessary arrangements with other banks for servicing cash requirements at various places.
6. The Grievance Redressal Mechanism procedure will be the same as that available to users of banks' ATMs for failed/disputed transactions.
7. Individuals can use WLA for cash withdrawal, to make payments, mini statement, change of PIN and issuance of the cheque book.
In May 2014, the Reserve Bank of India (RBI) authorised three non-banking entities for setting up white label ATMs. BTI Payments Pvt Ltd, Srei Infrastructure Finance Ltd, and RiddiSiddhi Bullions Ltd were allowed to set up White Label ATMs.
Earlier, four entities were authorised namely Tata Communications Payment Solutions, Prizm Payment Services Pvt. Ltd, Muthoot Finance Limited and Vakrangee Ltd.