White label Atm & Brown label Atm

In the recent years, the trend of ATM has grown all over indiaAn ATM (Automated Teller Machine) is a computerised machine that provides customers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial & non-financial transactions without the need to visit the bank branch. There are many types of ATM’s running in India at present like white label ATM, brown label ATM etc.


Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called “White Label ATMs” (WLAs). They provide the banking services to the customers of banks in India, based on the cards (debit/credit/prepaid) issued by banks.

Non-bank entities that set up, own and operate ATMs are called “White Label ATM Operators” (WLAO).


  • They are authorized under the Payment and Settlement Systems Act, 2007, by the RBI.
  • RBI granted the permission to non bank entities to set op White label ATMs in India to increase the geographical spread of ATMs for increased / enhanced customer service, especially in semi-urban / rural areas.
  • Tata Communications Payment Solutions Limited (Indicash) is the first company authorized by RBI to open WLAs in the country.
  • WLAO is permitted to have more than one Sponsor Bank. All the transactions of WLAs serviced by this Sponsor Bank would be settled through it.
  • The operators are entitled to receive a fee from the banks for the use of ATM resources by the bank’s customers and are not permitted to charge bank customer directly.
  • Cash Management at the WLAs will be the responsibility of the Sponsor Bank, who may if required, make necessary arrangements with other banks for servicing cash requirements at various places.


In addition to cash dispensing, ATMs / WLAs may offer many other services to customers. Some of these services include:

  • Account Information.
  • Cash Deposit (not permitted at WLAs).
  • Regular Bills Payment (not permitted at WLAs).
  • Purchase of Re-load Vouchers for Mobiles (not permitted at WLAs).
  • Mini / Short Statement Generation.
  • PIN change.
  • Request for Cheque Book.


Brown label’ ATM are those Automated Teller Machines where hardware and the lease of the ATM machine is owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM.


  • The Brown Label ATM centres carry the logo of sponsor banks.
  • The bank (which has outsourced this work) provides cash for that ATM.
  • RBI is not involved directly. These outsourcing companies have contractual obligation with their respective banks.
  • The private company owns & operates the ATM machine, pays office rent. They negotiate with the landlord, electricity company, telecom company and so on.
  • It  is a cost effective solution for the banks.


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