The Reserve Bank of India has draft guidelines for the setting up of White Label ATMs (WLAs). If the plan is implemented successfully then non-banking entities could set up ATM networks for the disposal of the customers. The banks, however will not withdraw from installing their ATMs. The continuous increase in the number of ATMs in the country and with that, the exponential growth in transactions is evident to the importance of ATMs.
ATMs have proved to be an important factor for the banks to connect with their customers. The move from RBI of allowing WLAs has been appreciated by the banks but they are also concerned about convenience of the customers. The setting up of WLAs can lead to increase in the efficiency of the ATMs as well as it will also help in lowering of installation charges of an ATM.
The Managing Director of Prizm Payment Services, Mr. Loney Antony said, "It was imperative that the RBI permit white label ATMs. It was only a matter of time. The main concern for the RBI was the regulatory framework, but with several banks outsourcing ATM management, white label ATMs are a natural extension." |
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