Automated Teller Machines (ATMs) have become an essential part of modern banking, allowing people to withdraw cash, deposit money, pay bills, and access other financial services conveniently. While most ATMs are operated by banks, there is a special category known as White Label ATMs (WLAs), which are managed by non-banking entities under the guidelines of the Reserve Bank of India (RBI).
For bank exam aspirants, understanding White Label ATMs is important because questions on types of ATMs, WLA operators, RBI regulations, and services offered are frequently asked in exams like SBI PO, IBPS PO/Clerk, RRB, LIC AAO, and other banking/insurance exams.
What are White Label ATMs?
White Label ATMs are ATMs set up, owned, and operated by non-banking companies. Unlike regular bank ATMs, WLAs can be used by customers of any bank for cash withdrawals, deposits, bill payments, and other services. They were introduced primarily to increase ATM access in rural and semi-urban areas, promoting financial inclusion and convenience. This is one of the most important Insurance Awareness Terms.
Key Features of White Label ATMs:
- Operated by RBI-licensed non-banking entities.
- Can serve customers of any bank.
- Charges apply after a limited number of free transactions.
- Available 24/7, including holidays.
- Reduces crowding and operational cost for banks.
- Provides additional services like bill payments, mobile recharge, and mini statements.
Why Are White Label ATMs Important for Bank Exam Aspirants?
Banking exams often test aspirants’ knowledge of financial inclusion, RBI initiatives, and non-bank financial services. White Label ATMs are a frequent static GK topic because:
- They are RBI-regulated financial instruments.
- Questions often cover types of ATMs, operators, services, and benefits/limitations.
- Understanding WLAs improves financial literacy scores in exams.
- Knowledge of WLAs helps aspirants answer reasoning-based questions on banking systems and operations.
Types of ATMs in India
India has various types of ATMs based on ownership, branding, and specialized functions. For exam purposes, it is important to know their features and examples.
| Type of ATM | Description | Example |
| White Label ATM | Operated by non-banking entities; no bank branding; licensed by RBI | Indicash, Tata Communications WLA |
| Brown Label ATM | Hardware owned by service providers; cash management by sponsor bank; bank branding present | Bank-leased outsourced ATMs |
| Orange Label ATM | Used for share transactions | Stock brokerage ATMs |
| Yellow Label ATM | Designed for e-commerce and online payments | E-commerce payment kiosks |
| Pink Label ATM | Exclusive ATMs for women with security arrangements | Women-only ATMs in metros |
| Green Label ATM | Catered to farmers and rural customers for agricultural banking | Rural agricultural ATMs |
Benefits and Limitations of White Label ATMs
White Label ATMs provide convenience and access to banking services while supporting financial inclusion. However, there are also certain limitations that aspirants should note for exams.
WLAs help expand banking access in underserved areas, reduce branch congestion, and provide 24/7 services. At the same time, challenges like transaction disputes, fees after limited free transactions, and operational costs exist.
| Feature | Benefits | Limitations |
| Accessibility | 24/7 availability for customers, even on holidays | Resolution of disputes can take time as multiple entities are involved |
| Financial Inclusion | Reaches rural, semi-urban, and low-income areas | May not generate profit if located near bank ATMs |
| Bank Card Acceptance | Accepts all debit cards irrespective of issuing bank | Customers need to pay fees after limited free transactions |
| Operational Support | Reduces crowd and operational cost for bank branches | Low interchange charges and high operating expenses may affect viability |
| Additional Services | Bill payments, mobile recharge, mini statements | Limited number of free services may discourage some users |
White Label ATM Operators in India
Currently, RBI has authorised four non-bank operators for White Label ATMs in India. These companies are responsible for installing and maintaining WLAs in rural and semi-urban areas.
| Operator | Number of ATMs |
| India 1 Payments (BTI Payments Private Limited) | 8,022 |
| Tata Communication Payment Solutions Limited | 6,189 |
| Vakrangee Limited | 5,414 |
| Hitachi Payment Services Private Limited | 5,388 |
How to Apply for a White Label ATM?
Only non-banking entities can apply for a White Label ATM. Aspirants should know the eligibility and application process for exam purposes.
Eligibility Criteria:
- Net worth of at least ₹100 crore.
- Objective of enhancing ATM access in rural and semi-urban areas.
- Must comply with RBI regulations and operational guidelines.
Application Steps:
- Write an application letter to a Non-Banking Financial Company (NBFC) or authorised entity.
- The NBFC evaluates the feasibility and potential location.
- If approved, the application is forwarded to the RBI for licensing.
- Post-approval, the non-bank entity sets up the WLA and ensures operational and technical compliance.
- The operator provides interoperable services for customers of all banks.
RBI Initiatives for White Label ATMs
RBI has introduced several measures to increase the reach and viability of WLAs, which are relevant for exams:
- On-tap authorization: Simplified approval process for new operators.
- Cash sourcing flexibility: WLAs can source cash from retail outlets, scheduled banks, or RBI.
- Expanded services: Allowing bill payment, cash deposit, and co-branded ATM cards.
- Revenue generation: Display of advertisements and partnerships with banks.
- Customer grievance handling: Consumer Education and Protection Cells (CEPCs) manage complaints.
Practice Questions on White Label ATMs for Bank Exams
- What does WLA stand for?
- Which authority regulates White Label ATMs in India?
- Name the first White Label ATM network in India.
- What is the minimum net worth required for a non-bank entity to apply for a WLA license?
- Which type of ATM is exclusively for women?
- How many White Label ATM operators are authorised by the RBI in India?
- Which WLA operator has the highest number of ATMs?
- List two services offered by WLAs besides cash withdrawal.
- What is the main objective of introducing WLAs in rural areas?
- Differentiate between White Label ATM and Brown Label ATM in one line.
Answer Key:
- White Label ATM
- Reserve Bank of India (RBI)
- Indicash
- ₹100 crore
- Pink Label ATM
- Four
- India 1 Payments (BTI Payments Private Limited)
- Bill payments, mobile recharge (or deposits, mini statements)
- To increase financial inclusion and ATM accessibility
- WLA is operated by non-banks under RBI license; Brown Label ATM is leased to service providers with bank branding
FAQs
A White Label ATM (WLA) is an ATM operated and managed by a non-banking entity licensed by the Reserve Bank of India (RBI). WLAs provide banking services like cash withdrawal, deposits, bill payments, and mini statements to customers of any bank.
Only non-banking financial companies (NBFCs) and authorised non-bank entities can apply to operate a White Label ATM. They must meet RBI eligibility criteria, including a minimum net worth of ₹100 crore.
White Label ATMs provide 24/7 banking services, promote financial inclusion, reduce bank branch congestion, accept all bank debit cards, and offer additional services such as bill payments and mobile recharges.
Limitations of WLAs include fees after limited free transactions, low interchange charges, dependency on location for profitability, and delays in resolving transaction disputes as multiple entities are involved.
White Label ATMs are owned and operated by non-banks under RBI license and have no bank branding. Brown Label ATMs are operated by outsourcing firms on behalf of banks, with bank branding, and RBI is not directly involved.
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Hi, I’m Tripti, a senior content writer at Oliveboard, where I manage blog content along with community engagement across platforms like Telegram and WhatsApp. With 3+ years of experience in content and SEO optimization related to banking exams, I have led content for popular exams like SSC, banking, railways, and state exams.