White Label Atm's
WHITE LABEL ATMS
- ATMs set up, owned and operated by nonbank entities are called white label ATMs.
- They are authorized under the Payment and Settlement Systems Act, 2007, by the RBI.
- Cash in ATMs is provided by the sponsored bank while the ATM machine does not have any branding of Bank.
- Their role is confined to enabling the transactions of all bank customers by establishing technical connectivity with the existing authorized, shared ATM Network Operators or Card Payment Network Operators.
- The operators are entitled to receive a fee from the banks for the use of ATM resources by the bank’s customers and are not permitted to charge bank customers directly. It does not have a logo that is not even by the sponsor bank.
- Tata Communications Payment Solutions Limited (Indicash) is the first company authorized by RBI to open WLAs in the country.
- RBI directly involved because these white label Companies have to separately get license/permission from RBI to run business.
BROWN LABEL ATMS
- Brown Label ATM are those Automated Teller Machines where hardware and the lease of the ATM machine are owned by a service provider–but cash management and connectivity to banking networks is provided by a sponsor bank.
- The private company owns & operates the ATM machine, pays office rent. They negotiate with the landlord, Electricity Company, Telecom Company and so on.
- The bank (which has outsourced this work) provides cash for that ATM.
- ATM has a logo of that bank (which has outsourced this work).
- RBI not involved directly. These outsourcing companies have a contractual obligation with their respective banks.
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