RBI eases business guidelines for white label ATMs
MUMBAI: RBI has eased business guidelines for white label ATMs allowing companies that manage these machines to source cashdirectly from the central bank, offer non bank services like bill payments and advertise even non financial products in their premises, increasing the revenue earning scope for these companies.
White label ATM Operators (WLAO), can now source cash directly from RBI offices and currency chests, and will no longer be dependent on sponsor banks for procurement of cash. The RBI has allowed the operators to source cash from any scheduled bank including rural and cooperative banks, it said in a statement on Thursday.
“On a review of operations of WLAs and representations received from stakeholders…it has been decided to allow the WLA Operators to buy wholesale cash, above a threshold of 1 lakh pieces of any denomination, directly from the Reserve Bank and Currency Chests against full payment,” the RBI said.
Furthermore, the regulators have allowed WLAOs to offer bill payment and deposit services as per the technical feasibility of the device as determined by the nodal body for licensing, NPCI. The ATMs would further be allowed to display advertisements of non-finance products as long as it doesn’t run on the screen when the customer is transacting, RBI said.
[“source=economictimes.indiatimes”]
