RAS question
White Label ATMs are owned and operated by:
Correct answer: (A) Non-bank entities.
White Label ATMs are ATMs set up, owned and operated by non-bank entities authorised by the Reserve Bank of India.
Explanation
White Label ATMs are not bank-owned ATMs with another name; the defining point is ownership and operation by non-bank entities. RBI's FAQ states that ATMs set up, owned and operated by non-banks are called WLAs, and that such non-bank ATM operators are authorised by RBI under the Payment and Settlement Systems Act, 2007. For a customer, using a WLA is much like using any bank ATM, and WLAs provide basic banking services. WLAs therefore belong to the non-bank-entity category. The contrast with Brown Label ATMs matters: in a Brown Label arrangement, the equipment may belong to a service provider, but the banking services come through sponsor banks.
Why the other options are wrong
- (B) RBI authorises non-bank WLA operators, but it regulates rather than owns or operates White Label ATMs.
- (C) White Label ATMs are not government-operated; their defining feature is that non-bank entities set them up, own them and operate them.
- (D) SBI is a bank, so its own ATMs are bank ATMs rather than White Label ATMs owned and operated by a non-bank entity.
Concept
Banking infrastructure in Indian Economy includes the institutional distinction between bank ATMs, White Label ATMs and Brown Label ATMs. RBI-regulated payment systems and financial inclusion channels are standard economy themes in RAS.