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Sunday, December 7, 2014

White Label ATMs (WLAs) in India – Guidelines. Delink Cash Supply

            The two major RBI notifications on WLAs are RBI Circular No DPSS.CO.PD. No. 2298 / 02.10.002 / 2011-2012 dated June 20, 2012 and DPSS.CO.PD. No. 1088 / 02.10.003 / 2013-14 dated November 14, 2013 on the captioned subject.

            In the last one year, 4,000+ WLA ATMs have been operationalised in India. Majority of the ATMs are located in Semi-Urban and Rural Areas.

            As per extant guidelines, only the Sponsor Banks could supply ATM Fit cash to the WLAO for loading in their ATMs. As the reach of the Sponsor Banks was limited to a certain geographical area, the Sponsor Banks had to tie up with other commercial banks for supply of ATM fit cash.

            Such an arrangement was leading to operational inefficiencies in the whole WLAO cycle and also increasing the operational costs.

            As a certain level of maturity has now been reached in WLA operations by all the stake holders, the stake holders represented to RBI for certain modifications in the operating conditions.

 Based on the review of the operations of White Label ATM (WLA) as well as representations received from the stakeholders, RBI has decided to as under:-


    • Delink cash supply from that of sponsor bank arrangements.
    • WLAO may now tie up with other commercial banks for cash supply at WLAs.
    • While the cash would be owned by the WLAO, the responsibility of ensuring the quality and genuineness of cash loaded at such WLAs would be that of the cash supplier bank.
    • A  suitable Service Level Agreements (SLA) to  be drawn up between the WLAO and the cash supplier bank for adequate supply of genuine and good quality notes.
    • WLAOs who have been authorised under PSS Act 2007 and have commenced operations are required to intimate RBI regarding commencement of the services 

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