BANKING AFFAIRS

Detailed explanation-1: -Q. Which of the following is also known as Bank owned ATM? Notes: Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called “White Label ATMs” (WLAs). They provide the banking services to the customers of banks in India, based on the cards (debit/credit/prepaid) issued by banks.

Detailed explanation-2: -Brown label ATM (also known as BLA ATM) refers to an ATM where the machine’s money management and connectivity to financial systems are provided by a bank (known as sponsor bank) but the machine is owned by the manufacturer (known as a service provider or vendor) and offered under a lease to the bank.

Detailed explanation-3: -White Label ATMs are ATMs that are owned and operated by non-banking entities. ATMs operated under this business model allow customers to use them for banking transactions regardless of the bank they have an account with.

Detailed explanation-4: -ATMs set up, owned, and operated by non-banks are called white label ATMs. They are authorized under the Payment and Settlement Systems Act, 2007, by the Reserve Bank of India.

Detailed explanation-5: -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.