White Label ATMs come to India

Recently India witnessed the launch of white label ATMs (WLAs) ATMs in the country. WLAs are owned and operated by private non-banking companies.  Contrary to the prevalent ATM scenario wherein the ATMs serve as an extended delivery channel for a bank and display respective banks branding, white label ATMs (WLAs) do not display any bank’s branding, as they are owned, set and operated by Private non-banking entities, hence they are termed as White Label ATMs. However WLA ATMs are similar to Bank ATMs. Currently WLAs are seen in global markets like US, Canada and are widely used as an alternative to Bank ATMs.

India is by comparison an underpenetrated ATM market with a total count of over 1.18 lakh ATMs in the country compared to other markets like US with 1390 per 10 lakh of population, UK which has 530 ATMs per 10 lakh of population, and China with around 211 ATMs per 10 lakh of population, India has only 98 ATMs per 10 lakh of population. This clearly indicates that there is huge potential to drive ATM penetration and availability in the country. Moreover, although there has been nearly 25 per cent year-on-year growth in the number of ATMs (1,18,000+ presently), their deployment has been predominantly in  Metro and urban markets . The Reserve Bank of India saw a need to expand the reach of ATMs in semi urban and rural locations and to increase its penetration.

In June 2012, RBI released guidelines for the introduction of white label ATMs in India. The RBI, as per its notification dated May 3rd 2013, authorized Tata Communication Payments Solution Limited (TCPSL), through a WLA license, as the first service provider to launch and operate white label ATMs in India amongst the 17 other players who have applied for a license. The Tata group has always played a pioneering role in identifying and supporting emerging and innovative business opportunities in India to create value for its people. The company rolled out India’s first white label ATM network under the brand name ‘Indicash’ recently in June’13.

The launch of Indicash is in line with the Reserve Bank of India’s (RBI) vision to accelerate growth and enhance ATM penetration across the country and aimed at empowering millions of Indians with the convenience to access their own money with ease. As per the WLA guidelines TCPSL will be deploying 15,000 Indicash ATMs in a record time of three years with 67 per cent of these deployed in semi-urban and rural areas and 33 per cent will be installed in metro and urban markets. It will be engaging with various National and Regional banks who will complement its rollout plans and service the cash requirements for its Indicash ATM network.

White label ATMs are similar to a Bank ATM. 

·         Customers from any bank in India can withdraw cash from such white label ATMs.

·         Likewise all savings account holders of banks in India can enjoy upto first 5 free transactions in a month on White Label ATMs/other bank ATMs

·         WLAs offer basic bank ATM services like cash withdrawals, mini-statement, balance enquiry and pin change.

·         Similar to most bank ATMs, white label ATM users can also withdraw a maximum of 10,000/- per transaction. For withdrawing more cash more transactions can be undertaken subject to the limit set by the respective banks.

The WLAs are likely to benefit customers at large as they would be conveniently located to aid quick access to one’s own money in the time of need. With ATMs being available 24X7, the masses will have better access to their own money and it will empower millions of Indians with easy accessibility to cash. It will be a useful addition to the existing banking network and will also be very effective in inculcating the habit of banking among the semi-urban and rural populace who are yet to witness ATM convenience in their locations while giving more ATM touch-points to the counterparts in urban markets.