White Label ATMs (WLAs)
Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called “White Label ATMs” (WLAs). They provide the banking services to the customers of banks in India, based on the cards (debit/credit/prepaid) issued by banks.
It is to be noted that ATMs have worked as an instrument of financial inclusion and continue to do so. ATMs have made it possible to realize the dream of anytime and anywhere banking possible upto an extent for the public. Though there has been around 20-25 % y-o-y growth in the number of ATMs , it has predominantly taken place in Tier I & Tier II centres (RBI Terminology). To expand the reach of ATMs in Tier III to VI centers, non-banks entities were also allowed to set up ATMs since 20 June 2012.
Note 1: Since September 2015, Government permitted Foreign Direct Investment (FDI), up to 100%, under the automatic route. Before that, foreign investment in White Label ATMs, was being allowed only through government approval route.
Note 2: The first company authorized by Reserve Bank of India (RBI) to open White Label ATMs in the country was Tata Communications payment Solutions Limited (TCPSL). It got launched under the brand name ‘Indicash’ in 2013.