Table of Contents
AUTOMATED TELLER MACHINE
NOTES
According to Reserve Bank of India (RBI) data, India had 221,492 ATMs as of September-end. Service providers may be forced to close down
almost 1.13 lakh ATMs across the country by March 2019, according to the Confederation of ATM Industry (CATMi).
SOME BASICS YOU SHOULD KNOW
ATMs can be classified into the following categories –
1. Bank owned ATMs
2. Brown Label ATMs
3. White Label ATMs
These categories of ATMs are on the basis of ownership of ATM, AT location, service contract of bank with service provider.
WHAT ARE BANK OWNED ATMS ?
Such ATMs are set up and owned by the bank itself. Bank is responsible for their operation and maintenance. Banks are entitled with responsibility of cash loading, AMC, security of the ATMs.
WHAT ARE BROWN LABEL ATMS ?
In case of Brown Label ATMs, service providers own the hardware of ATM machine. The responsibility of identifying ATM site, lease agreement with landlord, power supply to ATM kiosk lies with the service provider. Thus, service provider takes the responsibility of maintenance of the ATM whereas sponsor bank takes the responsibility of cash management and provide connectivity to ATM to banking network. Logo of sponsor bank is displayed on brown label ATM kiosk premises. Brown Label ATMs are most cost effective solution for the banks.
WHAT ARE WHITE LABEL ATMS ?
White Label ATMs are owned and operated by Non Banking Financial Companies (NBFC). RBI has granted license or permission to non-banking entities to open such ATMs. Any nonbanking entity with a minimum net worth of ₹ 100 crore can apply for white label ATM.
NBFCs rely on sponsor bank to settle all issues related to cash management, transaction settlement with other banks etc. Customers with debit card of ny bank may withdraw cash from such ATMs but they will have to pay a fee for the services.
Its members, which include the ATM managedservice providers (MSPs), brown-label ATM deployers (BLAs) and White Label ATM (WLAs)operators
NOTES
Nearly 50 per ent of the Automated Teller Machines (ATMs) may be shut down by March 2019 due to unviability of operations, hitting hard both urban and rural population, the Confederation of ATM Industry (CATMi) warne Currently, India has approximately 2,38,000 ATMs, of which around ,13,000 ATMs including 1,00,000 off-site and more than 15,000 white label ATMs
REASONS FOR CLOSING ATM?
“The forced closure is on account of unviability of operations brought about by recent regulatory guidelines for ATMs hardware and software upgrades, recent mandates on cash management tandards and the Cassette Swap method of loading cash,” CATMi said.
THE UPGRADATION WILL COST A LOT
staring at hugture of ₹3,200-4,800 crore for introducing cassette swap in ATMs and other upgradations
UPGRADE
Bankers feel that onsite ATMs should be exempted from the regulatory directive, requiring banks to use lockable cassettes in their ATMs (which will be swapped at the time of cash replenishment).
The ATM industry in India has reached a “tipping point”, and unless ATM deployers are compensated by banks for making these investments, there is likely to be a scenario where contracts are surrendered, leading to large-scale closure of ATMs
PRADHAN MANTRI JAN – DHAN YOANA WILL
BE HIT HARD
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