For those who do not know, in 2015, the Reserve Bank of India launched what is known as white label ATMs (WLAs). White label ATMs are basically non-branded ATMs and do not fall under a certain bank as they are run by non-banking entities. The concept was launched under the name ‘Indicash’ as part of the Government of India’s financial inclusion drive, especially in Tier II and Tier III cities.
Now, the Reserve Bank has allowed customers to even deposit cash in their bank accounts at WLAs as well as pay their utility bills. Approved by the Reserve Bank of India, WLAs can now source cash above Rs.1 lakh directly from the Central Bank and any other bank listed under the RBI including Regional Rural Banks and Cooperative Banks.
As a revenue-generating model for WLAs, the RBI has allowed such ATMs to advertise non-financial products as well, till the customer begins the transaction. The RBI stated that WLAs have to follow all the guidelines for safety in handling currency and have a thorough cyber-security framework which is applicable for all other banks as well.
Source: Financial Express