Together the company enjoys over 10 per cent market share in the 2 lakh ATMs market in the country, out of which 1. Indian banking sector has metamorphosed into Brown level atm and white level technology driven domain and this resulted in the growth and evangelism of "Brown Label" ATMs.
White label company cannot directly charge money on you. In such case, the cash managing bank will have the same responsibilities as indicated at a above.
Only the Cards issued by banks would be permitted to be used at the WLAs to start with. Cash Management at WLA will be done by sponsor bank. Thus, these guidelines are still not applicable but are likely to be soon approved.
The WLA Operator would be permitted to earn extra revenue through advertisement and by offering value added services.
White label ATM users can also withdraw a maximum of 10, per transaction. Bankers are already sounding caution about the pitfalls of white label ATMs. This is done to increase financial inclusion. At present, there are 11, white-label machines installed by the three operators who got permission from the Reserve Bank to run such machines two years ago.
Any customer from belonging to any bank, can use it. In the press release Hughes claimed that they are the preferred service providers to the leading brown label ATM vendors in India. It has a tie up with 37 banks to start with. NBFC need a bank sponsor to settles all issues related to cash management, transaction settlement with other banks etc for this ATM.
This machine contains Logo of sponsor bank. However, it was not being permitted as certain regulatory issues were involved.
With the expansion of ATM network, customers will be able to withdraw funds at more locations which will be convenient and located near to their home or place of work.
From such White Label ATM customer from any bank will be able to withdraw money, but will need to pay a fee for the services. As regards availability of funds for cash loading, a suitable arrangement would be entered into between the WLA and the Sponsor Bank The ownership of the cash to be loaded into such WLAs Cash Management will also include reconciliation of cash at the WLAs and appropriate accounting of excess cash, if any, on account of partial or no disbursal.
This commission directly charged on your account. The WLA Operator would be permitted to earn extra revenue through advertisement and by offering value added services. Difference is this ATM machine does not have any branding of Bank. In the recent years, there is a visible shift in the way banks look at the ATM business.
From the earlier model where banks used to buy outright the ATM machines and bear the cost of service, they are now preferring brown label ATMS i. With the expansion of ATM network, customers will be able to withdraw funds at more locations which will be convenient and located near to their home or place of work.
And I feel if the trend continues, which is more likely than not, soon brown-label ATMs will become history. The white label automated teller machines are likely to benefit customers as well as banks.
The charges for the transactions should be displayed on the screen before the customer initiates the transaction. First five transactions free every month. However, cash deposit or cash acceptance facility is not permitted at the WLAs.
Out of these 7, as many as 4, are in fully unbanked areas.
The white label automated teller machines are likely to benefit customers as well as banks. II Customer Grievance Redressal While the primary responsibility to redress grievance of customers relating to failed ATM transactions will vest with the Issuing Bank, the Sponsor Bank will provide necessary support in this regard, including making available relevant records and information, to the Issuing Bank.
Brown Label ATM is sharing cost concept. In Brown Label ATM hardware is owned by service provider, but cash management and network connectivity is provided by sponsor bank. Sponsor bank will make an arrangement with NBFC for the cash at respective locations.
Contagion means a Bad condition in one institution leads to negative effects in the other institutes in the market. So, it is unlikely that White label ATM companies will run profitably for a long period of time.
DreamGains Financials, Posted on: However, cash deposit or cash acceptance facility is not permitted at the WLAs.What is White Label ATM?
What are its benefits & limitations? How does it promote financial inclusion? What is brown label ATM? Who can apply for licence?
The ATM Network Operator, the WLA Operator and the Sponsor Bank shall enter into a Tri-partite Service Level Agreements (SLA) to address issues relating to inter-bank settlement of the transactions at the WLAs and settlement of customer complaints relating to failed ATM transactions.
The industry research publication titled ‘India ATM Managed Services and Outsourcing Market Outlook to The managed services and outsourcing market is characterized by high level of competition.
Market presence of the players tends to fluctuate as contracts for ATM management are entered into and expire within an average of years.
Recently approval of % FDI for the White Label ATM is given. This is done to increase financial mi-centre.comence White Label ATM and Brown Label ATM.
White Label ATM Initiative. track record in deploying and managing ~21, ATMs including Brown Label & White Label ATMs in India as on Octoberbacked by. Who will benefit from White Label ATMs: The white label automated teller machines are likely to benefit customers as well as banks.
In last few years in India has we have witnessed a lot of ‘brown label' ATMs, or outsourcing of ATM services by banks.
the WLA Operator and the Sponsor Bank shall enter into a Tri-partite Service Level.Download