Overview
The types of ATM in India are classified in three ways. By ownership there are bank ATMs, white label ATMs owned and run by RBI-authorised non-banks, and brown label ATMs deployed and operated for banks by service providers. By location they are on-site or off-site, and by function they range from cash dispensers to cash recyclers and portable micro ATMs.
ATM Meaning and Classification: Ownership, Location and Function
What Is an ATM and How Many Types Are There?
An ATM, or Automated Teller Machine, is a computerised machine that lets bank customers use their accounts to withdraw cash and carry out other financial and non-financial transactions without visiting a branch. The money it pays out comes from a demand deposit, money in a bank account that can be withdrawn on demand. The first cash machine was installed at Barclays Bank in Enfield, north London, on 27 June 1967.
A question on the types of ATM usually means types by ownership, the first of the three classifications:
| Basis | Types |
|---|---|
| Ownership | Bank ATM, white label ATM, brown label ATM |
| Location | On-site (at a branch) and off-site (elsewhere) |
| Function | Cash dispenser, cash recycler, micro ATM |
How Many ATMs Are There in India?
The first ATM in India was set up by HSBC in Mumbai in 1987, and in the next 10 years about 1,500 more followed. By September 2026 banks had deployed 1,36,669 ATMs and cash recyclers on-site and 73,092 off-site, along with 13,33,328 micro ATMs, as the RBI's provisional bank-wise statistics show.
| Bank group (number of banks) | On-site | Off-site | Total |
|---|---|---|---|
| Public sector (12) | 83,326 | 51,529 | 1,34,855 |
| Private sector (21) | 49,422 | 21,297 | 70,719 |
| Small finance (11) | 3,380 | 32 | 3,412 |
| Foreign (14) | 541 | 234 | 775 |
| All banks | 1,36,669 | 73,092 | 2,09,761 |
Public sector banks own almost two-thirds of the network, and State Bank of India alone had 65,209 ATMs and recyclers, 28,810 on-site and 36,399 off-site. Payment banks had no ATMs but did have micro ATMs; Airtel Payments Bank alone had 1,66,828.
White label ATMs are counted separately. More than 35,800 had been deployed by March 2023, from 11,706 at the end of 2015. The NPCI network that links them all connected more than 2.55 lakh ATMs, including cash deposit machines and recyclers, in January 2022.
Types of ATM by Ownership: White Label and Brown Label ATMs
White Label ATMs (WLAs): Meaning, RBI Rules and Operators
ATMs set up, owned and operated by non-banks are called white label ATMs, and their operators white label ATM operators (WLAOs). The RBI permitted them on 20 June 2012 so that ATMs would spread beyond Tier I and II centres, where most bank ATMs stood, into Tier III to VI centres, towns and villages with populations below 50,000.
The 2012 guidelines set the rules a white label operator works under:
- Who can apply: A non-bank company with a net worth of at least ₹100 crore, kept at all times, authorised under the Payment and Settlement Systems Act, 2007.
- Sponsor bank: Cash management at a WLA is the sponsor bank's responsibility; the WLAO owns the cash but neither it nor its agents may access it.
- Rural targets: Each operator chose one of three roll-out schemes, which required at least three, two or one machines in Tier III to VI centres for every machine in Tier I and II centres, with at least 10 per cent of the Tier III to VI machines in Tier V and VI.
- No direct charges: A WLA earns a fee from banks for use of the machine and may not charge the bank's customer directly.
- Limits at the start: A WLA could not accept deposits or sell mobile reload vouchers.
The rules were eased to make WLAs viable. From 2016 operators could source cash from retail outlets, and a review of 7 March 2019 let them buy wholesale cash directly from the RBI and currency chests, source cash from any scheduled bank, offer bill payment and interoperable cash deposit, and show advertisements. Foreign direct investment of up to 100 per cent in white label ATMs has been allowed under the automatic route since September 2015. Authorisation has been on tap since October 2019, and four non-bank entities were operating WLAs in 2023.
White Label ATM Operators in India
The early white label network was built by a handful of companies. A government reply of November 2016 gave the count by operator and by type of centre, and it shows the rural tilt that the RBI's roll-out ratios were meant to produce:
| Operator | Metro | Urban | Semi-urban | Rural | Total |
|---|---|---|---|---|---|
| Tata Communications Payment Solutions | 1,310 | 1,226 | 2,507 | 3,212 | 8,255 |
| BTI Payments | 132 | 142 | 1,495 | 2,028 | 3,797 |
| Hitachi Payment Services | 159 | 228 | 355 | 298 | 1,040 |
| Vakrangee | 106 | 63 | 45 | 90 | 304 |
| Riddhi Siddhi Bullions | 21 | 96 | 73 | 14 | 204 |
| Muthoot Finance | 28 | 60 | 74 | 22 | 184 |
| AGS Transact Technologies | 62 | 10 | 0 | 1 | 73 |
| All white label ATMs | 1,818 | 1,825 | 4,549 | 5,665 | 13,857 |
Rural and semi-urban centres held 10,214 of the 13,857 machines, almost three in every four.
Brown Label ATMs and How They Differ from White Label ATMs
A brown label ATM belongs to the bank's network but is deployed and operated for the bank by a managed service provider. Such providers managed about 30 per cent of all ATMs in the country, excluding white label ATMs, by the estimate of the RBI's Committee to Review the ATM Interchange Fee Structure, which was chaired by the chief executive of the Indian Banks' Association. In this model the cost of holding the cash is borne by the bank.
Banks can do this because the RBI permits them to outsource financial services under its guidelines on managing risks in outsourcing, issued in 2006 and 2015. The bank keeps the responsibility, so it must carry out due diligence on the service provider, write the terms into a contract, and audit the arrangement.
The difference from a white label ATM is who runs the machine and who answers to the RBI for it:
| Feature | White label ATM | Brown label ATM |
|---|---|---|
| Deployed and run by | A non-bank (WLAO), which also owns it | A service provider, for the bank |
| Authority | RBI authorisation, PSS Act 2007 | Bank's outsourcing contract |
| Cash | WLAO's; sponsor bank manages | Bank bears the cost of holding it |
| Earns from | Fees paid by banks for each transaction | Payments from the bank under its contract |
| Purpose | Spread ATMs into Tier III to VI centres | Let a bank outsource the running of its ATMs |
Types of ATM by Location and Function
On-Site and Off-Site ATMs, Cash Recyclers and Micro ATMs
By location, an ATM is on-site when it stands on a bank's premises and off-site when it stands elsewhere, at a market, a station or a fuel pump. On-site ATMs are usually more advanced, multi-function machines that complement a branch, while off-site machines serve a simple need for cash and are generally cheaper single-function devices.
The RBI's monthly statistics report the two separately for every bank, and in September 2026 banks had nearly twice as many ATMs on-site as off-site. White label ATMs are not part of these bank figures.
By function, ATMs go beyond cash dispensers:
- Cash recycler machines (CRMs): Accept deposits as well as dispense cash; the RBI's charge rules apply to them except for cash deposits.
- Micro ATMs: Portable devices; bank mitras (business correspondents who provide banking services in villages) carry them from place to place.
Besides cash, ATMs offer account information, cash deposit, bill payment, mini statements, PIN change and cheque-book requests. Any card issued by a bank in India, whether debit, credit or prepaid, can be used at any ATM or white label ATM in the country, as far as the issuer permits.
Card-less Cash Withdrawal by UPI and Talking ATMs
Card-less withdrawal at ATMs was first offered by a few banks only to their own customers at their own machines. On 19 May 2022 the RBI widened it into Interoperable Card-less Cash Withdrawal (ICCW), which works across banks:
- Who may offer it: All banks, ATM networks and white label ATM operators may give the option at their ATMs.
- How the customer is checked: The Unified Payments Interface (UPI) authorises the withdrawal; NPCI was asked to integrate UPI with all banks and ATM networks.
- How the money moves: Settlement runs through the National Financial Switch and the other ATM networks.
- Charges and limits: No charge beyond the normal ATM charges, and the same withdrawal limits as ordinary withdrawals at the bank's own and other banks' ATMs.
The RBI's reason was security as well as convenience. Without a card there is nothing to skim or clone, so card-less withdrawal helps contain frauds such as skimming, card cloning and device tampering.
Banks had to replace all magnetic stripe cards with EMV chip and PIN cards by 31 December 2018, because the data on a chip is far harder to copy than the data on a magnetic stripe. The RBI also tells customers to check for extra devices attached to an ATM, which can be fitted to capture card data, and never to share the PIN, even with a bank official.
ATMs must also serve customers who cannot read a screen. A talking ATM gives audible instructions, and the RBI asked banks to make all new ATMs installed from 1 July 2014 talking ATMs with Braille keypads, and to lay down a road map for converting the existing ones.
ATM Colour Labels: Green, Pink, Yellow and Orange Label ATMs
Are Green, Pink, Yellow and Orange Label ATMs Official?
Only two colour labels have a basis in the RBI's own documents. White label is an official category, defined in the RBI's guidelines and FAQs. Brown label appears in the RBI committee report as a class of ATM operator. Neither is about the machine's paint; both are about who owns and runs it.
Lists in study material also name green, pink, yellow and orange label ATMs, each tied to a purpose. None of the RBI's circulars, FAQs or statistics uses these labels, so the meanings those lists give are not official:
| Label in study lists | Meaning those lists give | Official status |
|---|---|---|
| Green label | ATMs for agricultural transactions | Not an RBI category |
| Pink label | ATMs for women only | Not an RBI category |
| Yellow label | ATMs for e-commerce transactions | Not an RBI category |
| Orange label | ATMs for share transactions | Not an RBI category |
| White label | Owned and run by an RBI-authorised non-bank | Official (RBI) |
| Brown label | Run for a bank by a managed service provider | Used in an RBI committee report |
ATM Network, Charges and Customer Rights
NPCI and the National Financial Switch
Cards of one bank work at another bank's ATM because the ATMs are linked. The National Financial Switch (NFS) is the largest network of shared ATMs in India. It was developed by the Institute for Development and Research in Banking Technology (IDRBT) in 2004 and is run by the National Payments Corporation of India (NPCI), an initiative of the RBI and the Indian Banks' Association under the Payment and Settlement Systems Act, 2007.
India's first shared ATM network came in 1997, when the Indian Banks' Association set up Swadhan, which let cardholders withdraw cash at any ATM in the network. The NFS took over that role, and in January 2022 its 1,203 members included four white label ATM operators.
A transaction at the card-issuing bank's own ATM is an on-us transaction; one at any other ATM or a white label ATM is off-us. For off-us use, the card-issuing bank pays the ATM's owner an interchange fee.
NPCI does far more than link ATMs. It was set up in December 2008, and in 2012 it launched RuPay, India's own card payment scheme, to give the country a domestic, open and multilateral system of payments. RuPay debit cards then spread through the Pradhan Mantri Jan Dhan Yojana, and by March 2021 Jan Dhan account holders had been issued 30.85 crore debit cards. NPCI's networks, from ATMs to cards and UPI, are among the tools of financial inclusion.
ATM Charges and Free Transactions: RBI Rules
The RBI sets the minimum number of free ATM transactions for savings account holders:
- Own bank's ATM: Five free financial transactions a month at any location; non-cash transactions are free without limit.
- Other banks' ATMs in six metros: Three free transactions a month, financial and non-financial together, in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi.
- Other banks' ATMs elsewhere: Five free transactions a month, financial and non-financial together.
- Beyond the free limit: Up to ₹23 per transaction from 1 May 2025, plus taxes.
The cap has risen over time: ₹20 from August 2014, ₹21 from 1 January 2022 and ₹23 from 1 May 2025. Banks set their own charges for cash withdrawn with credit cards or abroad, and the free-transaction rules do not apply to Basic Savings Bank Deposit Accounts, which have their own withdrawal conditions.
Because the free limit differs between metro and non-metro locations, every ATM must show clearly, by a message on the screen, a sticker or a poster, whether it is in a metro or a non-metro location.
Interchange Fee and the Cost of Running an ATM
Every off-us withdrawal costs the card-issuing bank an interchange fee, paid to the bank or operator that owns the ATM. For years the RBI fixed it. In August 2021 it raised the fee from ₹15 to ₹17 for a financial transaction and from ₹5 to ₹6 for a non-financial one, the first change since August 2012. Since the March 2025 update the fee is decided by the ATM network.
The fee exists because ATMs are expensive to run. The RBI's Committee to Review the ATM Interchange Fee Structure found a monthly cost of ₹83,700 to ₹95,000 per ATM for public sector banks other than SBI, and about ₹70,565 for brown label operators, rising to about ₹83,700 after new security rules such as anti-skimming and whitelisting solutions. When the RBI raised the fees in 2021 it cited the increasing cost of ATM deployment and maintenance.
Failed ATM Transactions, Cash-Outs and Customer Compensation
If an ATM debits the account but gives no cash, the card-issuing bank must re-credit the account within T plus 5 calendar days, where T is the day of the transaction. For each day of delay beyond that it must pay the customer ₹100 as compensation, without the customer having to claim it. At a white label ATM the card-issuing bank has the primary duty to resolve a failed transaction, with the sponsor bank supplying the records.
Failed transactions caused by the bank or the machine, such as a hardware fault or no notes in the ATM, are not counted among the free transactions and cannot be charged. A customer who gets no remedy from the bank within 30 days can go to the Reserve Bank Integrated Ombudsman Scheme.
A bank is penalised when its ATMs run out of cash. Under the RBI's Scheme of Penalty for non-replenishment of ATMs, effective from 1 October 2021, a cash-out of more than 10 hours in a month at any ATM attracts a flat penalty of ₹10,000 per ATM. For a white label ATM the penalty is charged to the bank that meets its cash needs, which may recover it from the operator.
Previous Year UPSC‑CSE Questions
Each question is explained option by option.
- UPSC Prelims 2018Which one of the following links all the ATMs in India ?
How to approach this Prelims question
Approach: The question asks which body runs India's shared ATM network. The National Financial Switch, the largest shared ATM network in India, was built by IDRBT in 2004 and is now run by the National Payments Corporation of India.
Trap to watch: The RBI and the Indian Banks' Association are tempting choices because both are linked to NPCI, but the RBI only regulates payment systems and the IBA only co-founded NPCI; neither runs the switch.
Why each option is right or wrong:
- (a) Indian Banks' Association: Wrong. It co-founded NPCI with the RBI but does not run the ATM switch.
- (b) National Securities Depository Limited: Wrong. It is a depository for securities, not an ATM network.
- (c) National Payments Corporation of India: Correct. It runs the National Financial Switch that links the ATMs.
- (d) Reserve Bank of India: Wrong. It regulates payment systems, but the ATM network itself is run by NPCI.
Answer: (c) National Payments Corporation of India. NPCI runs the National Financial Switch, which links all ATMs in India.
- UPSC Prelims 2017Consider the following statements:
- The National Payments Corporation of India (NPCI) helps in promoting financial inclusion in the country.
- NPCI has launched RuPay, a card payment scheme.
Which of the statements given above is/are correct ?
How to approach this Prelims question
Approach: Each statement is tested against what NPCI does. NPCI, an initiative of the RBI and the Indian Banks' Association, builds shared payment networks that widen access to banking; 30.85 crore debit cards had gone to Jan Dhan account holders by March 2021, so statement 1 holds. RuPay is NPCI's own card payment scheme, launched in 2012, so statement 2 holds.
Trap to watch: Students who know NPCI only as a payments operator may doubt statement 1, but its networks, including RuPay cards for Jan Dhan accounts, are themselves tools of financial inclusion.
Why each option is right or wrong:
- (a) 1 only: Wrong. It leaves out RuPay, which NPCI launched in 2012.
- (b) 2 only: Wrong. It leaves out NPCI's role in financial inclusion, seen in RuPay cards for Jan Dhan accounts.
- (c) Both 1 and 2: Correct. NPCI promotes financial inclusion and runs RuPay.
- (d) Neither 1 nor 2: Wrong. NPCI's networks widen access to banking, and RuPay is its own card scheme.
Answer: (c) Both 1 and 2. NPCI's networks widen access to banking, and RuPay is its own card scheme.
Sources
- RBI: FAQs on ATM / White Label ATM (updated 4 July 2025)
- RBI: Usage of ATMs and Cash Recycler Machines, Review of Interchange Fee and Customer Charges (updated 28 March 2025)
- RBI: Guidelines for White Label ATMs in India (20 June 2012)
- RBI: White Label ATMs in India, Review of Guidelines (7 March 2019)
- RBI: Report of the Committee to Review the ATM Interchange Fee Structure
- PIB: White Label ATMs to drive ATM penetration (25 July 2023)
- RBI: Bank-wise ATM/POS/Card Statistics, September 2026
- RBI: Interoperable Card-less Cash Withdrawal (ICCW) at ATMs (19 May 2022)
- RBI: Monitoring of Availability of Cash in ATMs, with the Scheme of Penalty for non-replenishment (10 August 2021)
- RBI: Master Circular on Customer Service in Banks (1 July 2014)
- Wikipedia: RuPay
- PIB: White Label ATMs (26 February 2016)
- PIB: ATM operating agencies of public sector banks (25 November 2016)
- Arthapedia (Indian Economic Service): White Label ATMs
- NCERT: Understanding Economic Development (Class X), Money and Credit
- Wikipedia: White-label ATM
- Wikipedia: Automated teller machine
- Wikipedia: National Financial Switch
- Wikipedia: National Payments Corporation of India
- UPSC: Previous Year Question Papers, Civil Services Examination
Editorial Disclaimer
This article explains the types of ATM in India for UPSC preparation from the Reserve Bank of India's circulars, FAQs and statistics. Figures are as stated in the cited documents. Colour labels other than white and brown are not RBI categories.
