usually white label ATM, or WLA, are ATMs set up and operated by a non-bank. As a customer, one can use these machines just like a regular ATM. WLAs provide debit card services like cash withdrawal and enquiry.
The Reserve Bank of India (RBI) authorizes non-bank ATM operators under the Payment and Settlement Systems Act, 2007.
Some of the companies that provide WLA services in India are Tata Communications Payment Solutions Limited, India1 Payments Limited and Hitachi Payment Services Pvt. Ltd.
WLA requirement: Banks generally incur various costs for setting up an ATM. This may include ATM systems, security and cash management costs. There are many places where a bank branch may not be present, and in such a case, the bank may not find it attractive to have its own ATM. Hence, RBI allowed the WLA to operate.
Services: In addition to disbursing cash, WLAs can also provide users with many other services and facilities. Such services include requesting for account information, cash deposit, bill payment, mini statement, PIN change and check book.
Transaction limits and fees: Using WLA is like using ATM of any bank. If you are within your free ATM transaction limit, you will not be charged anything extra. The RBI has set a free transaction limit at three transactions for metro cities and five for non-metro cities. However, banks can offer customers more free transactions if they hold premium bank accounts.
Adil Shetty, CEO, BankBazaar.com said that credit and debit cards issued by banks in India can be used at any ATM or WLA. The transaction fee at WLA remains the same as using any bank’s ATM. For example, if a bank offers you five free financial transactions in a month at an ATM, it will include both ATMs and WLAs of other banks.
RBI has classified transactions into two types: on-us transactions and off-us transactions. Transactions are done by us at Bank’s own ATMs. Banks allow you to have at least five free financial transactions in a month, irrespective of the location of the ATM. There are no limits or fees on non-cash withdrawal transactions.
Off-us transactions, or transactions at other providers’ ATMs, are divided based on their location in metro and non-metro cities. Banks offer you at least three free transactions (including financial and non-financial transactions) in a month as off-us transactions at metro locations. Metro locations are Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi.
On off-us transactions at non-metro locations, i.e. six places other than metropolitan cities, banks will allow you five free transactions in a month. These include financial and non-financial transactions.
“Some WLA operators set up ATMs and lease them out to banks. In such cases, these ATMs are considered as bank ATMs, and they allow free transactions up to their respective limits,” Shetty said.
In addition, customers may be charged for transactions exceeding the mandated number of free transactions at ATMs. Currently, as per RBI rules, these charges cannot exceed ₹20 per transaction by the issuing bank (plus applicable taxes, if any).
Transaction failure: Nowadays, banks usually automatically reverse failed transactions within a few minutes.
However, if you do not receive the reversal amount immediately, you should always try to lodge a complaint with the card issuing bank or the ATM owning bank.
In case of unsuccessful ATM transaction, you should complain to the card issuing bank or the ATM owning bank at the earliest.
“WLA ATMs display the contact details and toll-free numbers or help desk numbers of the officials concerned in the premises, and you can register a complaint using those details,” Shetty said.
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