White Label ATMs were introduced by the Reserve Bank of India (RBI) under the Payment and Settlement Systems Act 2007 to enhance financial inclusion and expand ATM networks in rural and semi-urban areas. These ATMs are managed and operated by non-banking entities, offering a unique solution to the challenges faced in these regions.
In this article, we will delve into the concept of White Label ATMs, their key characteristics, and how they differ from both normal and Brown Label ATMs.
Table of Contents
What Does White Label ATM Mean?
White Label ATMs (WLAs) are automated teller machines managed and operated by non-banking entities, as authorized by the RBI under the Payment and Settlement Systems Act of 2007. Unlike traditional bank-operated ATMs, WLAs enable customers to perform banking transactions, such as cash deposits, withdrawals, and bill payments, regardless of which bank they hold an account with.
Managed by non-bank operators, WLAs provide essential banking services but typically charge a minor fee for card issuance and transaction facilities. The RBI oversees the authorization of these non-bank operators to ensure compliance and service quality. For more information and a list of authorized WLA operators, visit the RBI website.
Related Read: How to Withdraw Money From an ATM Without a Card?
White Label ATM Example
Some examples of companies that operate White Label ATMs are:
- Tata Communication Payment Solutions Limited.
- Hitachi Payment Services Private Limited.
- Vakrangee Limited
- India1 Payments Limited (formerly BTI Payments Pvt. Ltd.)
Benefits of White Label ATMs
A few of the benefits of WLA are as follows:
-
- Financial Inclusion: WLAs play a crucial role in expanding financial services to rural, semi-urban, and low-income populations, thereby promoting financial inclusion.
- Cost Efficiency: By reducing the need for extensive branch networks, WLAs help banks lower operational costs associated with staffing and maintaining physical branches.
- Convenience: WLAs offer customers the convenience of accessing banking services without needing to visit a bank branch regularly, thus saving time and effort.
- Universal Access: They accept debit cards issued by any bank, providing customers with flexibility in using their preferred banking services.
- Additional Services: In addition to cash withdrawals and deposits, WLAs often offer value-added services such as mobile recharge and bill payments, enhancing customer convenience.
- Availability: These ATMs are accessible 24/7, including holidays, ensuring round-the-clock availability of banking services.
Related Read: What are the Advantages And Disadvantages of ATM
White Label ATM Operators in India in 2025
There are 4 White Label ATM operators in India. They are:
| White Label ATM Operators | 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 |
Recent developments show that banks in India are gearing up for a significant ATM refresh and expansion cycle, focusing on upgrading technology and expanding networks.
- Banks plan to replace 40,000 ageing ATMs and add 10,000 new ones in the next 12-18 months, while White Label ATM operators expanded by 4,292 ATMs in FY23.
- Private sector banks are shifting towards cash recyclers to reduce branch visits and operational costs, with an estimated capital expenditure of ₹2,000 crore anticipated for this transition.
What is the Difference Between a Normal ATM, a White Label ATM, and a Brown Label ATM?
| Normal ATM | White Label ATM | Brown Label ATM |
| Owned and operated directly by banks | Owned and operated by non-banking entities | Operated by outsourcing firms under contracts with specific banks |
| Displays the logo and branding of the owning bank on the machine | Does not display any bank logos or branding on the machines | Displays the logo or name of the sponsoring bank on the machines |
| Banks are fully responsible for the maintenance, operation, and regulatory compliance of these ATMs | Require licenses and permissions from the RBI to operate | The hardware and machines are leased by service providers |
| Directly regulated by the RBI to ensure adherence to banking standards and security protocols | RBI is directly involved in regulating and overseeing these ATMs | The RBI is not directly involved in the regulation of these ATMs, as they operate under bank contracts |
Challenges and Limitations of White Label ATMs
- Complex Dispute Resolution: In case of transaction disputes, involving the WLA operator, the customer’s bank, and the sponsor bank the resolution process is lengthy and cumbersome.
- Limited Free Transactions: Only a few transactions are free; beyond that, customers incur charges, which can be discouraging.
- Low Profitability in Competitive Areas: When located near bank-managed ATMs, WLAs often struggle to generate profit due to customer preference for bank ATMs.
- Financial Viability Issues: Low interchange fees coupled with high operational costs raise concerns about the profitability of WLAs, leading some operators to surrender their licenses.
- Regulatory Penalties: In 2021, the RBI imposed penalties totaling ₹6 crore on four WLA operators for non-compliance with specific provisions of the RBI guidelines. This includes fines of ₹2 crore each on BTI Payments Pvt Ltd and Hitachi Payment Services, and ₹1 crore each on Tata Communications Payment Solutions and Vakrangee Ltd, underscoring the difficulties in meeting regulatory requirements.
Conclusion
While WLAs face challenges such as complex dispute resolution, limited free transactions, and financial viability issues, they offer significant benefits. WLAs enhance financial inclusion, especially in rural and semi-urban areas, reduce operational costs for banks, and provide 24/7 access to essential banking services, making them a vital component of India’s financial infrastructure.
Frequently Asked Questions (FAQs)
1. How to apply for a White Label ATM franchise in India?
To apply for a White Label ATM franchise in India, non-banking entities with a net worth of at least ₹100 crore must apply for an NBFC, emphasizing the goal of improving ATM access in rural and semi-urban areas.
2. Which is India’s first White Label ATM?
Indicash, established by Tata Communication Payment Solutions Limited, was the first and largest White Label ATM network in India, pioneering ATM accessibility and services across the country since its inception on June 27, 2013, in Chandrapada, Maharashtra.
3. Is UPI ATM a White Label ATM?
Yes. UPI ATM is a White Label ATM that allows you to withdraw cash without using debit cards.
4. What types of cards can be used at a WLA?
WLAs accept debit cards issued by any bank, providing customers with the flexibility to access their accounts regardless of their banking provider.
5. Are there any charges for using White Label ATMs?
Yes, there are charges associated with using White Label ATMs beyond a certain number of free transactions. Customers may incur fees for services like cash withdrawals and balance inquiries.
6. Are there any differences in the facilities offered to customers at a bank ATM compared to a White Label ATM?
Yes, there can be differences. Bank ATMs often provide more personalized services related to account management and customer support, whereas White Label ATMs focus primarily on basic banking transactions like withdrawals and deposits.
7. What are the services/facilities available at WLAs?
WLAs typically offer services such as cash withdrawals, deposits, balance inquiries, PIN changes, and sometimes value-added services like mobile recharge and bill payments.
8. How do White Label ATMs benefit banks?
White Label ATMs benefit banks by reducing the need for extensive branch networks, thereby lowering operational costs. They also enhance customer satisfaction and convenience by providing wider access to banking services, especially in rural and semi-urban areas, thereby promoting financial inclusion.
