Many a time while roaming around the city, you might have come across an ATM which does not belong to any bank. However, if you want, you can still withdraw money from that ATM. If you have been reluctant to do so because of security reasons, then you must know that those ATMs are also secured
Many a time while roaming around the city, you might have come across an ATM which does not belong to any bank. However, if you want, you can still withdraw money from that ATM. If you have been reluctant to do so because of security reasons, then you must know that those ATMs are also secured and are regulated under the Payment & Settlement Systems Act 2007 by the Reserve Bank of India.
Such kind of ATMs are set up, owned and operated by non-bank entities and are known as White Label ATMs (WLAs). Here are 6 things to know about WLAs:
What is PSS Act, 2007?
The Payment & Settlement Systems Act 2007 provides for the regulation and supervision of payment systems held in India and designates the RBI as the authority for that purpose and all related matters.
The PSS Act also provides the legal basis for “netting” and “settlement finality”. This makes it of great importance, as other than the Real Time Gross Settlement system, all other payment systems function on a net settlement basis in India.
Automated Teller Machines, which are commonly known as ATMs, are computerized machines that provide the customers of banks the facility of accessing their accounts for withdrawing and depositing cash as well as carry out other financial as well as non-financial transactions without visiting their bank branch.
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What is the difference between ATM and WLA?
Broadly, ATMs differ from WLAs in two ways:
i) In case of a White Label ATM, the logo displayed on the ATM machine and in the ATM premises pertain to the WLA operator instead of a bank.
ii) Cash deposits are not accepted at WLAs as it is not permitted by the RBI at present.
What was the need to allow non-bank entities for setting up of WLAs?
The Government of India is taking certain measures to ease out the transaction facilities across the country. Keeping the fact in view that banks won’t be able to provide their ATM facilities in each and every place, non-bank entities were allowed by the RBI to set up White Label ATMs. This was done to increase the geographical spread of ATMs and enhance the customer service.
What type of cards can be used at a WLA?
ATM-cum-debit cards, credit cards and open prepaid cards issued by any authorized bank can be used at any WLA for making various transactions.
What are the services available at WLAs?
In addition to cash withdrawals, WLAs offer many other services to bank customers. Some of these services may include:
Request for a Cheque Book
What are the services not available at WLAs?
Some of the services which are not available at WLA’s are:
Acceptance of deposits are not permitted
Regular bill payments are not permitted
Purchase of Re-load vouchers for mobiles are not permitted
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How are the failed or disputed transactions settled using a WLA?
There is an authorized Grievance Redressal Mechanism available to the users of WLA for resolving any failed or disputed transaction. However, the primary responsibility to settle the grievances of customers relating to failed transactions at WLAs will vest with the card-issuing banks.