What is White Label ATM (WLA)?

Basic Term: Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called "White Label ATMs" (WLAs).

Non-bank entities incorporated in India under the Companies Act 1956, to set up, own and operate ATMs in India are known as “White Label ATM Operators” (WLAO) and such ATMs are called “White Label ATMs” (WLA

Who can set up and operate WLA?

White Label ATM Operators (WLAO): Non-bank entities incorporated in India under the Companies Act 1956 are allowed to operate WLAs. WLAOs need to get authorization from the RBI under the Payment and Settlement Systems (PSS) Act, 2007 for setting up WLAs and should have a minimum net worth of Rs.100 crore as per the latest financial year’s audited balance sheet at all times. Even 100% FDI, under the automatic route, has been allowed in this WLOs since September 2015.

Which was the first company in India to get the White Label ATM license from RBI?

Tata Communications Payment Solutions Limited (TCPSL) was the first company authorized by the Reserve Bank of India (RBI) to open White Label ATMs in the country. It got launched under the brand name 'Indicash'.

Why do we need White Label ATMs (WLA)?

The basic idea about White Label ATM is to increase the geographical spread of ATM to enhance financial inclusion. Before 2012, RBI allowed only the banks to set up Automated Teller Machines (ATM).

ATM's growth was important as ATMs provided an alternative to the depositors to carry out various financial and non-financial transactions without having to visit a bank branch, like withdrawing and depositing cash, obtaining account information, checking bank statements, etc. 

ATMs expanded the scope of banking to anytime, anywhere banking through interoperable platforms provided by the authorized shared ATM Network Operators / Card Payment Network Operators.


As such, ATMs growth across the country could be used as a powerful tool for financial inclusion by delivering a wide variety of banking services to customers. However, under banks, the growth of ATMs was mostly limited to Tier I and Tier-II cities. In order to rapidly grow the reach of ATMs to Tier III – Tier VI cities in the country, RBI allowed non-bank entities to set up ATMs since 20 June 2012 and hence White Label ATMs (WLA) came into existence.

What Is an Automated Teller Machine (ATM)?

An Automated Teller Machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the aid of a branch representative or teller. Anyone with a credit card or debit card can access most ATMs. Certain credit cards, however, may have more trouble. ATMs are convenient, allowing consumers to perform quick, self-serve transactions from everyday banking like deposits and withdrawals to more complex transactions like bill payments and transfers.  Automated teller machines are electronic banking outlets that allow people to complete transactions without the help of a bank representative or teller. ATM transactions can be as simple as a deposit or balance inquiry, or more complex like a balance transfer or bill payment. To use an ATM, consumers need to have a debit or credit card, and a personal identification number.

What are the different types of ATM machines?

There are two primary types of ATMs called Dispensers & Recyclers. Dispensers only allow customers to withdraw cash and receive updated account balances. The Recyclers, more complex machines accept deposits, facilitate line-of-credit payments, transfers, and report account information. To access the advanced features of the complex units, a user must be an account holder at the bank that operates the machine.

Who can have ATM Ownership?

In many cases, banks and credit unions own ATMs. However, Non-banking entities also can own ATMs as per the guidelines of RBI under the PSS act 2007, which are called White Label ATMs (WLA). ATMs also take some of the customer service burdens from bank tellers, saving banks money in payroll costs.

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