ATM has made the life of the common man very easy. Recently the government has given approval of 100% FDI for the White Label ATM. This is done to increase financial inclusion. You must be aware of the word ATM, but White Label ATM what’s that? What you should know about White Label ATM. Well ATM machine is broadly classified into three categories
(1) White Label ATM (WLA)
(2) Brown Label ATM
(3) Bank own ATM
What is White Label ATM?
- The Automated Teller Machines (ATMs) which is set up, owned and operated by non-banks is called as White Label ATM (WLA).
- Features and Functions of White Label ATM are same as that of Normal ATM machines.
- The difference is this ATM machine does not have any branding of Bank.
- These machines are usually deployed by NBFCs (Nonbanking Financial Institutions).
The basic idea about White Label ATMs is to increase the geographical spread of ATMs so that more people can be incorporated under the financial inclusion program.
Also Read – Micro ATMs – How it is different from other ATMs?
What you should know about White Label ATM?
- White Label ATMs are like normal ATM. However, a cash deposit or cash acceptance facility is not permitted at the WLAs.
- At White Label ATM you will not find the logo of any bank like ICICI, SBI, etc. You will find the logo of White Label ATM operator on these ATMs.
- An Individual can use their ATM-cum-debit cards, or credit card for cash withdrawal at these ATMs.
- You can use WLA for cash withdrawals, utility bill payments, mini statements and PIN changes.
- In case of fail transaction while using a white-label ATM you need to report to the card issuing bank. ATM card issuing bank is responsible of resolving conflict.
- Cash Management at WLA will be done by the sponsor bank. Sponsor bank will make an arrangement with NBFC for the cash at respective locations.
- The Grievance Redressal Mechanism will be the same as that of normal bank ATMs.
How White Label ATMs Functions?
White Label ATMs are operated by NBFC. NBFC needs a bank sponsor to settle all issues related to cash management, transaction settlement with other banks etc for this ATM. The sponsor bank has to tie up with the other bank at the place where it is not present.
What is Brown Label ATM?
- Brown Label ATM is sharing cost concept. In Brown Label ATM hardware is owned by the service provider, but cash management and network connectivity is provided by the sponsor bank.
- Features and functions of Brown Label ATM are the same as that of normal ATM Machines.
- This machine contains the Logo of the sponsor bank.
- Brown Label ATM is cost cost-effective solution for banks.
Difference between White Label ATM, Brown Label ATM
What is the Bank’s own ATM?
- The Automated Teller Machines (ATMs) which is set up, owned and operated by banks is called bank own ATMs.
- The responsibility of cash management, AMC, and security lies with banks.
Hope allowing 100% FDI for White Label ATMs will help in making the larger network of AMT and increase financial inclusion.
