|Consider the following statements about white label '', ATM in India|
|1. Non-bank entities are not allowed to open such ATM.|
|2. Opening of such ATM requires Reserve Bank's authorisation under the Payment and Settlement|
|Systems Act, 2007. Which of the statements given above is/are correct?|
A) 1 only
B) 2 only
C) Both 1 and 2
D) neither 1 nor 2
Correct Answer: A
Solution :In its attempt to hasten financial inclusion across the country, the RBI in 2011 declared to allow all non-banking entities to set up and operate their own automated teller machines (ATMs) known as White Label ATM's . The white-label ATM (WLA) would allow non- banking companies to set up and run their own ATMs, under a pact with a sponsor bank and a network provider. WLA operators can also earn extra revenue through advertisements and value-added services. Further, it allows autonomy of operators on deciding locations and creating their own brand with fixed annual targets mandated by RBI. Customers of any bank can use such white-label ATMs, but they will have to pay a fee for using the service. All transactions through these ATMs will be charged. These ATMs will not come under the ambit of the RBI guideline which mandates five free transactions on ATMs of other banks. White-label ATMs accepts only cards issued by banks and does not accept cash deposits.
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