{"id":11684,"date":"2024-07-18T19:09:06","date_gmt":"2024-07-18T13:39:06","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=11684"},"modified":"2024-12-19T13:48:56","modified_gmt":"2024-12-19T08:18:56","slug":"white-label-atm","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/white-label-atm\/","title":{"rendered":"What is White Label ATM? WLA Examples And Benefits"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we will delve into the concept of White Label ATMs, their key characteristics, and how they differ from both normal and <a href=\"https:\/\/razorpay.com\/learn\/brown-label-atm\/\">Brown Label ATMs<\/a>.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e7e039ec392\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e7e039ec392\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/white-label-atm\/#What-Does-White-Label-ATM-Mean\" >What Does White Label ATM Mean?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/white-label-atm\/#White-Label-ATM-Example\" >White Label ATM Example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/white-label-atm\/#Benefits-of-White-Label-ATMs\" >Benefits of White Label ATMs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/white-label-atm\/#White-Label-ATM-Operators-in-India-in-2025\" >White Label ATM Operators in India in 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/white-label-atm\/#What-is-the-Difference-Between-a-Normal-ATM-a-White-Label-ATM-and-a-Brown-Label-ATM\" >What is the Difference Between a Normal ATM, a White Label ATM, and a Brown Label ATM?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/white-label-atm\/#Challenges-and-Limitations-of-White-Label-ATMs\" >Challenges and Limitations of White Label ATMs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/learn\/white-label-atm\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/learn\/white-label-atm\/#Frequently-Asked-Questions-FAQs\" >Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-Does-White-Label-ATM-Mean\"><\/span><b>What Does White Label ATM Mean?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">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 <a href=\"https:\/\/razorpay.com\/learn\/what-is-atm\/\">ATMs<\/a>, WLAs enable customers to perform banking transactions, such as cash deposits, withdrawals, and bill payments, regardless of which bank they hold an account with.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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 <\/span><a href=\"https:\/\/www.rbi.org.in\/Scripts\/PublicationsView.aspx?id=12043\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">the RBI website<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span data-sheets-root=\"1\" data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;Related Read: How to Withdraw Money From an ATM Without a Card?&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:332739,&quot;3&quot;:{&quot;1&quot;:0},&quot;4&quot;:{&quot;1&quot;:2,&quot;2&quot;:14277081},&quot;9&quot;:0,&quot;10&quot;:1,&quot;11&quot;:3,&quot;12&quot;:0,&quot;15&quot;:&quot;Calibri&quot;,&quot;19&quot;:0,&quot;21&quot;:0}\">\u00a0 \u00a0 Related Read: <a href=\"https:\/\/razorpay.com\/learn\/how-to-withdraw-money-from-atm-without-card\/\">How to Withdraw Money From an ATM Without a Card?<\/a><\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"White-Label-ATM-Example\"><\/span><b>White Label ATM Example<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Some examples of companies that operate White Label ATMs are:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tata Communication Payment Solutions Limited.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Hitachi Payment Services Private Limited.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vakrangee Limited<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India1 Payments Limited (formerly BTI Payments Pvt. Ltd.)<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Benefits-of-White-Label-ATMs\"><\/span><b>Benefits of White Label ATMs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A few of the benefits of WLA are as follows:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial Inclusion<\/b><span style=\"font-weight: 400;\">: WLAs play a crucial role in expanding financial services to rural, semi-urban, and low-income populations, thereby promoting financial inclusion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cost Efficiency<\/b><span style=\"font-weight: 400;\">: By reducing the need for extensive branch networks, WLAs help banks lower operational costs associated with staffing and maintaining physical branches.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Convenience<\/b><span style=\"font-weight: 400;\">: WLAs offer customers the convenience of accessing banking services without needing to visit a bank branch regularly, thus saving time and effort.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Universal Access<\/b><span style=\"font-weight: 400;\">: They accept debit cards issued by any bank, providing customers with flexibility in using their preferred banking services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Additional Services<\/b><span style=\"font-weight: 400;\">: In addition to cash withdrawals and deposits, WLAs often offer value-added services such as mobile recharge and bill payments, enhancing customer convenience.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Availability<\/b><span style=\"font-weight: 400;\">: These ATMs are accessible 24\/7, including holidays, ensuring round-the-clock availability of banking services.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Related Read: <a href=\"https:\/\/razorpay.com\/learn\/advantages-and-disadvantages-of-atm\/\">What are the Advantages And Disadvantages of ATM<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"White-Label-ATM-Operators-in-India-in-2025\"><\/span><b>White Label ATM Operators in India in 2025<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are 4 White Label ATM operators in India. They are:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>White Label ATM Operators<\/b><\/td>\n<td><b>Number of ATMs<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">India 1 Payments (BTI Payments Private Limited)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8,022<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tata Communication Payment Solutions Limited<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6,189<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Vakrangee Limited<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5,414<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Hitachi Payment Services Private Limited<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5,388<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">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.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Private sector banks are shifting towards cash recyclers to reduce branch visits and operational costs, with an estimated capital expenditure of \u20b92,000 crore anticipated for this transition.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-Difference-Between-a-Normal-ATM-a-White-Label-ATM-and-a-Brown-Label-ATM\"><\/span><b>What is the Difference Between a Normal ATM, a White Label ATM, and a Brown Label ATM?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<tbody>\n<tr>\n<td><b>Normal ATM<\/b><\/td>\n<td><b>White Label ATM<\/b><\/td>\n<td><b>Brown Label ATM<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Owned and operated directly by banks<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Owned and operated by non-banking entities<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Operated by outsourcing firms under contracts with specific banks<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Displays the logo and branding of the owning bank on the machine<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Does not display any bank logos or branding on the machines<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Displays the logo or name of the sponsoring bank on the machines<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Banks are fully responsible for the maintenance, operation, and regulatory compliance of these ATMs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Require licenses and permissions from the RBI to operate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The hardware and machines are leased by service providers<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Directly regulated by the RBI to ensure adherence to banking standards and security protocols<\/span><\/td>\n<td><span style=\"font-weight: 400;\">RBI is directly involved in regulating and overseeing these ATMs<\/span><\/td>\n<td><span style=\"font-weight: 400;\">The RBI is not directly involved in the regulation of these ATMs, as they operate under bank contracts<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Challenges-and-Limitations-of-White-Label-ATMs\"><\/span><b>Challenges and Limitations of White Label ATMs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Complex Dispute Resolution:<\/b><span style=\"font-weight: 400;\"> In case of transaction disputes, involving the WLA operator, the customer&#8217;s bank, and the sponsor bank the resolution process is lengthy and cumbersome.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Limited Free Transactions:<\/b><span style=\"font-weight: 400;\"> Only a few transactions are free; beyond that, customers incur charges, which can be discouraging.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Low Profitability in Competitive Areas: <\/b><span style=\"font-weight: 400;\">When located near bank-managed ATMs, WLAs often struggle to generate profit due to customer preference for bank ATMs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial Viability Issues<\/b><span style=\"font-weight: 400;\">: Low interchange fees coupled with high operational costs raise concerns about the profitability of WLAs, leading some operators to surrender their licenses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Regulatory Penalties<\/b><span style=\"font-weight: 400;\">: In 2021, the RBI imposed penalties totaling \u20b96 crore on four WLA operators for non-compliance with specific provisions of the RBI guidelines. This includes fines of \u20b92 crore each on BTI Payments Pvt Ltd and Hitachi Payment Services, and \u20b91 crore each on Tata Communications Payment Solutions and Vakrangee Ltd, underscoring the difficulties in meeting regulatory requirements.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">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&#8217;s financial infrastructure.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><b>1. How to apply for a White Label ATM franchise in India?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To apply for a White Label ATM franchise in India, non-banking entities with a net worth of at least \u20b9100 crore must apply for an NBFC, emphasizing the goal of improving ATM access in rural and semi-urban areas.<\/span><\/p>\n<h3><b>2. Which is India&#8217;s first White Label ATM?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h3><b>3. Is UPI ATM a White Label ATM?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Yes. <a href=\"https:\/\/razorpay.com\/learn\/upi-atm-cash-withdrawal\/\">UPI ATM<\/a> is a White Label ATM that allows you to withdraw cash without using debit cards.<\/span><\/p>\n<h3><b>4. What types of cards can be used at a WLA?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">WLAs accept debit cards issued by any bank, providing customers with the flexibility to access their accounts regardless of their banking provider.<\/span><\/p>\n<h3><b>5. Are there any charges for using White Label ATMs?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h3><b>6. Are there any differences in the facilities offered to customers at a bank ATM compared to a White Label ATM?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h3><b>7. What are the services\/facilities available at WLAs?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">WLAs typically offer services such as cash withdrawals, deposits, balance inquiries, PIN changes, and sometimes value-added services like mobile recharge and bill payments.<\/span><\/p>\n<h3><b>8. How do White Label ATMs benefit banks?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>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<\/p>\n","protected":false},"author":151156506,"featured_media":13078,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1387],"tags":[1926],"class_list":{"0":"post-11684","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments","8":"tag-atm"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/11684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156506"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=11684"}],"version-history":[{"count":8,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/11684\/revisions"}],"predecessor-version":[{"id":15015,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/11684\/revisions\/15015"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/13078"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=11684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=11684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=11684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}