- These are ATM’s which are not owned by banks but by private ATM service providers.
- Customers from any bank can deposit or withdraw money from such ATM,s. Your banks pay a service fee for the usage.
- The product needs to be approved by Reserve Bank of India. RBI has been reluctant to allow white-label (or no name) ATMs by non-banking entities.
- Reserve Bank of India (RBI) has decided to permit non-bank entities to setup, own and operate ATMs.
- while the primary responsibility to redress grievances of customers relating to failed ATM transactions would vest with the issuing bank, the sponsor bank will provide necessary support in this regard, including making available necessary records and information to the issuing bank.
- For this purpose, the sponsor bank should have necessary arrangements with the White Label ATM operator.
What is the Status of Brown label ATMs in India :
'Brown label' ATM are those Automated Teller Machines where hardware and the lease of the ATM machine is owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM.
The `brown label' has come up as an alternative between bank-owned ATMs and 'white label' ATMs. As in India white label ATMs were not allowed by RBI (in February, 2012, RBI has issued the draft guidelines for introduction of white ATMs, but final approval has yet to come.), the concept of Brown Label ATMs started picking up.
In view of the high cost of ATM machines and RBI's guidelines for expansion of ATMs, the concept of Brown Label ATM network is likely to expand at a brisk pace in next few years. In the recent years, there is a visible shift in the way banks look at the ATM business. From the earlier model where banks used to buy outright the ATM machines and bear the cost of service, they are now preferring brown label ATMS i.e. where the machine and service is outsourced. There are indications that as many as 50% may soon be under this category.
However, after approval of white label ATMs, the bankers will review the expansion model for their ATMs.
after approval of white label ATMs, the bankers will review the expansion model for their ATMs.
ReplyDeleteWhat is the Status of Brown label ATMs in India :
'Brown label' ATM are those Automated Teller Machines where hardware and the lease of the ATM machine is owned by a service provider, but cash management and connectivity to banking networks is provided by a sponsor bank whose brand is used on the ATM.
The `brown label' has come up as an alternative between bank-owned ATMs and 'white label' ATMs. As in India white label ATMs were not allowed by RBI (in February, 2012, RBI has issued the draft guidelines for introduction of white ATMs, but final approval has yet to come.), the concept of Brown Label ATMs started picking up.
In view of the high cost of ATM machines and RBI's guidelines for expansion of ATMs, the concept of Brown Label ATM network is likely to expand at a brisk pace in next few years. In the recent years, there is a visible shift in the way banks look at the ATM business. From the earlier model where banks used to buy outright the ATM machines and bear the cost of service, they are now preferring brown label ATMS i.e. where the machine and service is outsourced. There are indications that as many as 50% may soon be under this category.
However, after approval of white label ATMs, the bankers will review the expansion model for their ATMs.
NEWS FOR BROWN LABEL ATMs
In September, 2011, it was reported that Hughes Communications India Ltd will set up 5000 Brown Label ATMs in India. In the press release Hughes claimed that they are the preferred service providers to the leading brown label ATM vendors in India.
All Major ATM vendors in the country like FIS, TSI, TCBIL, Diebold, AGS, Prizm, FSS and Euronet use Hughes VSAT terminals to set up ATMs. .
Under Brown label ATM, the hardware and lease is under the ownership of the service provider, but connectivity and cash handling and management is the responsibility of the sponsor bank.
The best part is that the ATM is under the brand and logo of the sponsor bank. Thus this model is about a shared network that results in tremendously cutting costs within banks.
Today the vast majority of ATMs worldwide use a Microsoft Windows OS, primarily Windows XP Professional or Windows XP Embedded. A small number of deployments may still be running older versions of Windows OS such as Windows NT, Windows CE, or Windows 2000