White Label ATM Operators Allowed To Source Cash Directly From RBI
The RBI permitted white label ATM operators to source cash from any bank, including cooperatives and regional rural bank.
The Reserve Bank of India relaxed norms for white label ATM operators and allowed them to buy wholesale cash directly from the central bank.
The RBI also permitted while label ATM operators to source cash from any bank, including cooperatives and regional rural banks. White label ATMs are owned and operated by non-bank entities on behalf of the banks.
On a review of operations of white label ATMs and representations received from stakeholders, as also to enhance the viability of white label ATMs, it has been decided to allow them to buy wholesale cash, above a threshold of 1 lakh pieces (and in multiples thereof) of any denomination, directly from the RBI and currency chests against full payment, the central bank said in a notification.
They are also being allowed to source cash from any scheduled bank, including cooperative banks and regional rural banks and to offer bill payment and interoperable cash deposit services, subject to technical feasibility and certification by the National Payments Corporation of India.
The RBI has also allowed white label ATM operators to display advertisements pertaining to non-financial products or services anywhere within the white label ATM premises, including the ATM screen, except the main signboard.
“It shall be ensured that the advertisements running on the screen disappear once the customer commences a transaction,” the RBI said.
Among others, the RBI has repealed its earlier order of permitting white label ATM operators to source cash from retail outlets.
“Further, banks may issue co-branded ATM cards in partnership with the authorised white label ATM operators and may extend the benefit of ‘on-us’ transactions to their white label ATMs as well,” it said.
All guidelines, safeguards, standards and control measures applicable to banks relating to currency handling and cyber-security framework for ATMs shall also be applicable to the white label ATM operators, the RBI said.