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Friday, 18 January 2013

White Label ATMs - WLAs in India

Non-bank entities that setting up, owning and operating ATMs in India is called as White Label ATM Operators (WLAO). Non-bank owned & operated ATMs are called as White Label ATMs (WLAs).

On June 20, 2012 Reserve Bank of India (RBI) invited applications from minimum Rs.100 Crore net worth non-bank entities which incorporated in India under Companies Act 1956, to get authorisation to set up WLAs.

With an 23-25% year-on-year growth in the number of ATMs (90,000+ presently), their deployment has been predominantly in Tier I and Tier II centres. Adding on to banks efforts in this direction lots more to be done.

This move from RBI is to encourage setting up ATMs in Tier III and Tier IV centres and rural India.

After obtaining authorisation from RBI under the Payment and Settlement Systems (PSS) Act 2007 WLAs can start the operations in India. As a prerequisite non-banking entities getting authorisation for WLAs shoulda maintain a minimum net worth of Rs.100 crore at all times.

Information Source: www.rbi.org.in


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