What to keep in mind while using white label ATMs: From features, services to charges - all details here
For setting up an ATM (Automated Teller Machine), a bank needs to pay several costs, including that of the ATM premises, ATM systems, security as well as cash management. There are places where banks do not have their branch and might not find it cost-effective to set up an ATM on its own. The solution to this problem is a white label ATM. ATMs set up, owned and operated by non-banking organisations are called white label ATMs. These ATMs are authorised under the Payment and Settlement Systems Act, 2007, by the RBI. The RBI on March 7 reviewed the guidelines for white label ATMs operational in India and urged these ATM service providers to take measures to improve financial security and safety of customers. Here are all you need to know about the White label ATMs.
White label ATMs features:
Using a White label ATM is similar to using a regular ATM machine. A customer can use his\her card for services like cash withdrawal, statements, enquiries etc. (Photo: Reuters)
White label ATM new services:
These ATMs were not used to provide cash deposit service. But now after new guidelines, they will be providing this service too. These ATMs can also offer bill payment services. (Photo: Reuters)
White label ATMs: Extra charges details:
Until and unless a user is not surpassing the withdrawal limit of his\her card, he shall not be charged anything extra. For metro cities, the free transaction limit is set at three transactions per card\account, while five for non-metro city users. However, some banks also provide a higher number of free transactions to some customers who use premium bank accounts or services. (Photo: Pixabay)
White label ATMs: Interchanging fee
For a few years now, additional security measures have raised the costs for these white label ATM operators. The service providers are demanding a raise in interchange fee. Currently, the ATM interchange fee for cash transactions and non-cash transactions is at ₹15 and ₹5 respectively. (Photo: Reuters)
White label ATMs can display ads
As per the latest RBI guidelines, white label ATMs are now allowed to display third-party advertising on their ATM premises, unlike regular ATMs. (Photo: Pixabay)