Should we say hello to white label ATMs?

RBI followed up on last week to allow specialist NBFCs to set up ATMs for a cross section of banks. Except for Net worth requirements and the attendant focus on security, the guidelines do not constrain the selection of organisations allowed to set up ATMs

One needs to establish a net worth of INR 1 B or 100 Crore ( Sau Crore) to set up these useful machines at more convenient locations as banks have been constrained by higher real estate costs and the rush for prime spaces in bustling cities. Lo cost installations  have long served customers in the US with a low withdrawal limit including 7000 at 7-11 stores alone.

Meanwhile Visa conducted a financial literacy study where the best countries came in at  a percentage score belo 50 , with Brazil at no. 1 on 47.8%. India is a poor no. 23 but the gap is not so big at 13% leaving India with a 35% population that is Financially aware, indians avoiding discussions of money in family situations

India has only 87000 ATMs. The WLAs (White Label ATM entities) have options to choose between Schemes A-C with Scheme A allowing them to set up 1000 ATMs in year 1 doubling in year 2 and trebling in Year 3 while Scheme C requires the operator to set up a minimum of 25000 ATMs in the first three years

The WLAs have to align with a Sponsor Bank with RTGS membership and Card Payment Network operators. Authorisation has to be sought within four months of these guidelines issued yesterday



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