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White Label ATMs: How Different Are They From Other ATMs?


ATMs or Automated Teller Machines installed at easily accessible locations has tremendously rendered the life of a common man much easy.


With several innovations made from the time it was deployed for the first time in India, a new class of ATMs has more recently sprung up called as the white-label ATMs.

White Label ATMs: How Different Are They From Other ATMs?

With features and functionality similar to other regular ATMs, such ATMs approved by the RBI cannot have any bank branding and are to be set up and deployed by Non banking financial institutions (NBFCs).

The approval for this new class of ATMs was given to increase the penetration of ATMs more pronouncedly in rural areas.

In respect of the other similarity that such white-label ATMs share with other ATMs is that guideline that apply to other ATMs are applicable to them also.

Further the charges for transacting at such ATMs set up by NBFCs are at par with the charges levied by banks.

How such White-label ATMs function?

Such ATMs operated by the NBFCs require a bank sponsor who settles issues relating to management of cash and other bank related dealings including transaction settlement. The sponsor bank has to tie up with the other bank at a place where it is not present.


For other issue such as maintenance of the ATM machine, ATM operator or the NBFC company maintaining the ATM is responsible.

NBFC companies who have deployed white-label ATMs

Since the time, RBI has given its go ahead for white-label ATMs or WLAs, several NBFCs are allowed to install WLAs. Among these, the subsidiary company of Tata Communications Ltd., Tata Communications Payment Solutions Ltd. (TCPS) was the first to deploy such an ATM.

Other NBFC companies, including Muthoot Finance have plan to follow the suit with the installation of a number of such ATMs across the country . To Know more about the development. Click here.

Other stipulations for WLA ATMs

RBI in respect of cash handling has come up with guidelines whereby it has withdrawn the previous instruction wherein WLA operators as well as agents cannot have access to cash at the WLA.

The instruction was previously enforced to ensure that notes loaded into the machine are the once provided by the sponsor banks and are genuine in all respect.

The apex institution also guided operators of WLAs to have some fixed ratio of ATMs in urban and rural areas.

Whom to go in case of failed transactions at WLAs?

Like transactions executed at other ATMs, transactions at WLAs that fail have to be first reported to the card-issuing bank.

And it will be primarily accountable for resolving any discrepancy with inputs from the operator of WLA and sponsor bank.

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