What is a White-label ATM?
A white-label ATM (Automated Teller Machine) is a type of ATM that operates without displaying the branding of a specific bank or financial institution. Instead, it is run and managed by non-banking entities known as White Label ATM Operators (WLAOs), which are authorized by regulatory authorities like the Reserve Bank of India (RBI) in the Indian context. Development of the rural areas has been an important topic across the government. This upliftment is crucial for the Indian economy as the majority of the Indian population still lives in rural areas. Even though there are stats that support this statement, according to a report from the World Bank 64.61% of the working Indian population comes from a rural background. Rural India contributes to almost 50% of the total GDP making it a significant domain to serve by financial institutions. To speed up the process of development, there is a strong need to make financial services readily available at an affordable cost. To cater to this issue, the government is ensuring the delivery of financial services such as bank accounts, low-cost credits, financial advisories, and insurance services. Earlier, banks had limited reach towards rural areas and this area lacked getting proper attention from banks and financial institutions in order to provide basic banking facilities. As per RBI, more than 70% of active ATMs are located in urban areas. In order to facilitate the stagnant distribution of ATM service, RBI came up with the concept of White-label ATMs.
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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