MANU/RMIC/0233/2012

Ministry : Reserve Bank of India

Department / Board : Department of Payment and Settlement Systems

Circular No. : DPSS.CO.PD. No. 2298 / 02.10.002 / 2011-2012

Date : 20.06.2012

Referred IN

The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs/
Urban Co-operative Banks / State Co-operative Banks/
District Central Co-operative Banks
Authorised ATM Network Operators/Card Payment Network Operators
Prospective White Label ATM Operators. Dear Sir,

White Label ATMs (WLAs) in India - Guidelines

In terms of existing rules/regulations, only banks are permitted by Reserve Bank of India (RBI) to set up Automated Teller Machines (ATMs) as extended delivery channels. Banks have played a major role in encouraging ATM adoption by customers and modifying behavioral strategies in the domain of personal banking. The investments in ATMs have been leveraged for delivery of a wide variety of banking services to customers across the banking industry and expanded the scope of banking to anytime, anywhere banking through interoperable platforms provided by the authorised shared ATM Network Operators / Card Payment Network Operators.

2. Although there has been nearly 23-25 % year-on-year growth in the number of ATMs (90,000+ presently), their deployment has been predominantly in Tier I & II centres. There is a need to expand the reach of ATMs in Tier III to VI centres (classification of centres as prescribed under the Census of India 2011). In spite of the banks' pioneering efforts in this direction, much needs to be done.

3. Keeping this in view, RBI has reviewed the extant policy on ATMs. While reviewing the policy, the Reserve Bank has taken into account the feedback received from banks, authorised ATM network operators, non-bank entities and members of public on the draft guidelines issued and placed on the Banks website, on February 14, 2012.

4. Accordingly, it has been decided to permit non-bank entities incorporated in India under the Companies Act 1956, to set up, own and operate ATMs in India. Non-bank entities that intend setting up, owning and operating ATMs, would be christened "White Label ATM Operators" (WLAO) and such ATMs would be called "White Label ATMs" (WLAs). They will provide the banking services to the customers of banks in India, based on the cards (debit/credit/prepaid) issued by banks. The WLAO's role would be confined to acquisition of transactions of all banks' customers and hence they would need to establish technical connectivity with the existing authorised shared ATM Network Operators / Card Payment Network Operators.

5. Non-bank entities would be permitted to set up WLAs in India, after obtaining authorisation from R........