In order to boost the banking facilities in the country, Finance Ministry have proposed the Reserve Bank Of India (RBI) for the introducing of white-label ATMs.
What Are White Label ATMs?
White Label ATMs also known as no name ATMs or common ATM’s. Setup and maintained by private ATM service providers these ATMs would not belong to any particular bank. In common ATM’s, customers from any bank can deposit or withdraw money and their respective bank then pay for the service.
The introduction of White Label ATM’s where ATMs will be owned and maintained by non banking entities, banks will get relieved from the cost of setting up, maintenance and transaction costs. Especially it will help banks providing ATM service in remote places without incurring setting and maintenance cost.
As of now RBI do not now allow White label ATM. According to the current RBI guidelines, only brown label ATMs are allowed where banks can own and maintain ATM’s under there brand name where they allow customers of other banks to operate ATM’s for free cash withdrawal for first five transactions every month. But with this banks ends up paying Rs 3000 crore to settle inter-bank transaction cost every year.