Types of ATM – White, Brown, Pink, Green | UPSC – IAS
In the recent years, the trend of ATM has grown all over india. Now there are many economical/ financial expert analysis on the growth of ATM usage, especially in urban areas. Now in the urban areas, people usually avoids the branch unless it is necessary, hence people in a large amount who are living in a busy scheduled life, usually prefers the ATMs.
There are Different Types Of ATM available which are as follows: –
White Label ATM – When ATMs are owned and operated by non-bank entities but they are not doing ‘outsourcing-contract’ from a particular bank.
Brown Label ATM – When banks outsourced the ATM operations to a third party.
Green Label ATM – ATM is provided for Agricultural Transaction.
Orange Label ATM – Provided for Share Transactions.
Yellow Label ATM –Â Set up for the purpose of E-commerce.
PINK label ATM – Such ATM are monitored by guards who ensure that only women access these ATM. The sole purpose of such ATM is to mitigate the problem of women standing in long queues of ATM.
Biometric ATM – ATMs which uses security features like fingerprint scanner and eye scanner of the customer to access the bank details.
About White Label ATMs | UPSC – IAS
ATMs set up, owned and operated by non-bank entities are called white label ATMs.
They are authorized under the Payment and
Settlement Systems Act, 2007, by the RBI.
Cash in ATMs is provided by the sponsored bank while ATM machine does not have any branding of Bank.
Their role is confined to enabling the transactions of all banks customers by establishing technical connectivity with the existing authorized, shared ATM Network Operators or Card Payment Network Operators.
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.
Tata Communications Payment Solutions Limited (Indicash) is the first company authorized by RBI to open WLAs in the country.
RBI directly involved because these white label Companies have to separately get license/permission from RBI to run business.
Why do we need White label ATMs ? | UPSC – IAS
ATMs offer convenience to customer (Because he doesn’t need to visit Bank branch every time). ATMs are open 24/7, and even on holidays.
Convenience to bank, because they don’t have to keep large staff/office (compared to a system without ATMs). It reduces their cost of branch-operation.
About Brown Label ATMs | UPSC – IAS
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 .
The private company owns & operates the ATM machine, pays office rent. They negotiate with the landlord, electricity company, telecom company and so on.
The bank (which has outsourced this work) provides cash for that ATM.
ATM has logo of that bank (which has outsourced this work).
RBI not involved directly. These outsourcing companies have contractual obligation with their respective banks.
About NPCI | UPSC – IAS
It is an initiative of RBI & Indian Banks Association (IBA) under provisions of the Payment & Settlement Systems Act, 2007.
It is the umbrella organization for all retail payments and settlement systems in the country.
It also manages the UPI platform & links all the ATMs in India.
Other initiatives under NPCI are: BHIM, Unified Payments Interface (UPI), RuPay, BharatQR, Aadhaar Enabled Payment System (AePS), National Automated Clearing House (NACH) for financial institutions etc
Very helpful.
Thanks.
Very helpful 🙂
Thanks !!