• In order to drive ATM penetration in the country, with a greater focus on tier-3 and tier-4 centres, non-banking companies have been permitted to set up, own and operate White Label ATMs (WLAs) in the country.

• Four authorised non-bank entities are operating White Label ATMs in the country, Union Minister of State for Finance Bhagwat Kisanrao Karad said in a written reply in Rajya Sabha.

• WLAs were introduced in India in 2013.

What is an Automated Teller Machine (ATM)?

An ATM is a computerised machine that provides customers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial & non-financial transactions without the need to visit the bank branch.

What is White Label ATM (WLA)?

• ATMs set up, owned and operated by non-banks are called White Label ATMs. Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India (RBI).

• For a customer, using a WLA is just like using an ATM of any bank.

• The rationale to allow non-banking entities to set up WLAs has been to increase the geographical spread of ATMs for increased/enhanced customer service, especially in semi-urban/rural areas.

• In addition to dispensing cash, ATMs/WLAs may offer many other services/ facilities to customers. 

Some of such services include:

i) Account information

ii) Cash deposit

iii) Regular bill payment

iv) Mini/short statement generation

v) PIN change

vi) Request for cheque book.

Complaints against WLAs

• The Consumer Education and Protection Department of RBI has informed that 98 complaints have been received against WLAs from April 1, 2022 to June 30, 2023.

• Such complaints fall under the purview of Consumer Education and Protection Cells (CEPCs) of RBI. 

• CEPCs examine each complaint based on the merits of the case, documentary evidence available and the comments received from the Regulated Entity and its adherence to the extant regulatory guidelines.

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