Objective of establishing White-label ATM
- Financial inclusion: Financial inclusion helps to develop a culture of savings in the segments of the rural areas, which has its role to cultivate overall economic development. Initiatives of financial inclusion include banks providing basic savings bank deposit accounts with facilities such as no minimum balance, withdrawal/deposit of cash, ATM facility, etc. to every account holder. White label ATMs helps in achieving this objective.
- Driving ATM penetration: ATM penetration in India doesn’t have satisfying figures, as per the data on a population base of 10lakhs there are less than 100 ATMs, whereas in USA the figure is 14 times that of Indian ATMs. The government in order to irradicate the issue has invited private players to enter this business domain to reach masses.
- Cultivating banking habits: White label ATMs are like mini banks, as they not only perform cash dispensing service but they also provide basic banking services like checking account balance, providing mini statements, payments of bills, cheque book request, etc. which will help the rural area to understand basic banking feature and connect them with mainstream banking services.
- Geographical reach: To ensure better geographical reach and financial inclusivity, keeping in mind the large population of the country. This was done to provide banking customer services all over the country and tackle the geographical adversities which was faced by banking sector as these private players are already in business line in such distant places and they understand the challenges and solutions better than the government.
- Encourage Non bank players: Government has introduced White Label ATMs to brought up and to ease the pressure on the public banks while giving the private companies a way to make profit out of the financial system, but with the end goal being betterment of the rural and semi urban region.
- Obtain FDI: Recently, the government has announced that there can 100% of FDI in establishing white label ATMs, this will allow foreign players to provide the ATM services in India, and customer can get better options and better service.
White-label ATM
White-label ATM: The concept of white-label ATMs facilitates collaboration between non-banking entities and traditional banks. These ATMs are designed to be interoperable, meaning customers from various banks can use them for transactions. This interoperability enhances accessibility and convenience for users, especially in areas where traditional bank-branded ATMs may be limited.
Table of Content
- What is a White-label ATM?
- Features of White-Label ATM
- Reasons behind the Introduction of White Label ATM by RBI
- Objective of establishing White-label ATM
- White-Label ATM operator in India
- Different types of ATMs which are available in India
- Advantages of White-Label ATMs
- Disadvantages of White-Label ATMs
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