What Is White Label ATM & How Does It Work For Withdrawals?

What is White Label ATM?

White label ATM serve as the crucial element of the banking and financial services ecosystem, offering a more convenient access to cash withdrawal facilities beyond the ones offered by the traditional bank owned ATMs.

What is White Label ATM?

White label ATM serve as the new category of ATMs and are not owned and operated by any bank entity. These ATMs aim to expand the banking accessibility to customers across diverse locations. 

1. What Is White Label ATM (WLA)? 

These are the kind of ATMs which are owned, operated and managed by the non-banking entities. White label ATMs allow customers to use their ATMs for different banking transactions, irrespective of the bank account they have. 

These ATMs are operated under the orders/mandate issued by the Reserve Bank of India (RBI). 

Under the Payment and Settlement Systems Act 2007, RBI approved the setting up of WLAs in the country. The primary purpose of introducing these ATMs was to expand India’s ATM network and reach, particularly in semi urban and rural areas. 

Key Points:

  • These ATMs do not require any branding or the bank logo, it offers a neutral branding and allows multiple banks to offer their services through a single ATM network. 
  • This involves a partnership between the ATM deployer and various banks or the financial institutions.
  • The transaction process in these ATMs consists of a lending bank which will provide cash, a sponsor bank or institution in between which will look after the settlements, and at last the ATM network provider. 

White Label ATM

  • The middle stage, i.e. the sponsor bank or the financial institution facilitates the availability of cash for the white label ATM. 
  • RBI in 2012, from its survey acquired that most of the ATMs are being installed in urban areas only, and have a limited count in the semi urban and rural areas. 
  • Therefore in June 2012, RBI decided to allow the non banking entities to own and operate ATMs. 
  • The first white label ATM, named Indicash, was launched on May 3rd, 2013.
  • The White Label ATMs are available 24/7, including on holidays. 

2. Key White Label ATM Operators 

White Label ATM Operator ATM Name Issuance/Licensed Since 
Tata Communications Payment Solutions Ltd. Indicash May 3rd, 2013
Hitachi Payment Services Pvt. Ltd. Hitachi Money Spot November 25th, 2013
Vakrangee Limited Vakrangee Kendra Limited January 23rd, 2014
Muthoot Finance Ltd. Muthoot ATMJanuary 30th, 2014
BTI Payments Pvt Ltd.India1 Payments Ltd. February 12th, 2014
RiddhiSiddhi Bullions LimitedState ATM May 15th, 2014
AGS Transact Technologies Ltd. OnGo June 30th, 2014 
Key White Label Operators In India

These are some of the white label operators authorized by RBI. 

3. Working for Withdrawals 

These ATMs accept all cards used for withdrawal and offer the first three to five transactions free of charge every month, which varies from location to location. 

After the end of free service offering, White Label ATM charges a minimum amount of charges on transactions. The WLA operator receives a fee from the banks they have partnered with for the use of their ATM by the customers of that bank.  The fees charged by the WLA operator from the bank varies differently according to each respective bank. 

Apart from cash withdrawal facility, WLAs also provides inquiry card services too. After the withdrawal of money, these ATMs also offer the facility to check the account information, making regular bill payments, etc.

4. Steps for the application of White Label ATM

Step 1 – The non banking entities applying for the White Label ATM must have a minimum total net worth of Rs.100 crore to be eligible for white label ATM license.

Step 2 – However, an application letter to NBDC (Non-Banking Financial Company) must be submitted by stating the requirement of an ATM.

Step 3 – If all the criteria’s are met, then the application will move further. 

Only the non banking entities have the access to apply for a White Label ATM at a specific location. 

White Label ATM benefits

5. Pros and Limitations


  • Customers no longer have to visit a bank on a regular basis. 
  • These ATMs help in boosting the financial stability rate of semi urban, rural areas and low income individuals. 
  • These ATMs accept all kinds of cards irrespective of the bank. 
  • They are available 24×7 and even on holidays. 
  • One of the prime benefits that banks get from WLAs is that they no longer have to maintain a staff, as partnering with these ATMs helped them in reducing the operational costs.
  • They also provide some additional facilities like mobile recharge, bill payments, and some other services too. 


  • After the free services offered by these ATMs are over, the customers are required to pay an amount to use these services, which may not be suitable for some customers. 
  • Like other ATMS, here too remains the chances of some unsuccessful transactions. 
  • If the White label ATM and the bank managed/operated ATM, both are present in the same locations, then there are chances that WLAs might not earn much profit. 
  • The low interchange charges and high operational expenses raises a question around WLAs financial viability. 

These ATMs represent collaborative efforts between the non-banking institutions and financial entities to offer banking accessibility and provide convenient cash withdrawal services to customers across different locations in the country. 

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Published By: Aashita Singh
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Gargi Chatterjee
Gargi Chatterjee
3 months ago

These white label ATM seems to be offer a fresh approach to ATM services.

Sushant Negi
Sushant Negi
3 months ago

These ATMs are increasingly becoming more popular day by day because of their services!

Saurav Shukla
Saurav Shukla
3 months ago

Always heard the name of these ATMs, never knew the whole concept. Now getting the whole view of this ATM concept.

Navya Singh
Navya Singh
3 months ago

True, these ATMs offers a new convenient way of withdrawing cash. But sometimes causes error in transactions, have seen it once!