• The RBI has eased business guidelines for white label ATMs allowing companies that manage these machines to source cash directly from the central bank, offer nonbank services like bill payments and advertise even nonfinancial products in their premises, increasing the revenue earning scope for these companies.
• White Label ATM Operators are now allowed to buy wholesale cash, above a threshold of 1 lakh pieces (and in multiples thereof) of any denomination, directly from the Reserve Bank and currency chests against full payment.
• The White Label ATM Operators can also offer bill payment and Interoperable Cash Deposit services, subject to technical feasibility and certification by the National Payments Corporation of India (NPCI).
• Banks can issue co-branded ATM cards in partnership with the authorized White Label ATM operators and may extend the benefit of ‘on-us’ transactions (where the customer or cardholder and ATM are of the same bank) to their WLAs as well.
Mains Paper 3: Economy
Prelims level: White Label ATMs