ATMS set, owned and managed by non-banks, white label ATMS | Photocredit: –
Setting up cash machines under the “white label” model seems to be lucrative for non -bank entities, which increases the possibility of expanding these ATMs at a faster pace.
Chennai headquarters Payment technology Solutions Supplier Financial Software and Systems (FSS) weighs the option to request a license for a White Label ATM operator (WLAO) after the reserve Bank of India and the National Payments Corporation of India (NPCI) have rejected the ATM-Interchange reverence.
Last year, the payment technology-solution supplier Electronic and Payment Services PVT LTD (EPS) received in Mumbai received a WLAO license from the RBI.
FSS and EPS already offer end-to-end ATM and managed services for banks. ATMS set, owned and managed by non-banks are called White Label ATMS (WLAS).
Rise of WLAO
The rise of new WLAOS is crucial, because the total growth of the ATM is mat over the past five years, even because the use of cash remains considerable in the economy, despite a rapid increase in digital payments.
The increase in the exchange costs (with effect from 1 May 2025), where a bank pays another bank/ WLAO a fee when its customer uses the ATMs of the latter, from RS 17 to RS 19 for financial transactions and from RS 6 to RS 7 for non-finance transactions, the interest of non-banks of workshops seems to have looked.
Vishal Maru, Head – Global Services, FSS, said: “White label ATM is an opportunity that is always available and in my opinion it is much more profitable than the Brown label atm, which we operate … We are studying it very closely.”
Under the brown label ATM model, FSS maintains and operates the ATM. Cash management and network connectivity are checked by a sponsor bank, whose branding appears on the ATM.
“We look at it very intensively (WLA) as a business case and we believe it is a very profitable company. We have created a separate team that works on it.
“We have received a number of consultants on board, who look at it … We will make a decision in the coming months. Then it will clearly go to our board for approval,” Maru said.
According to the RBI guidelines, non-banking entities with a WLAO license must have a minimum net value of £ 100 crore, which must be maintained at all times.
Investigated
FSS investigates “schedule A” sharply under the aforementioned guidelines, whereby it has to roll out at least 1,000 WLAs in the first year of operations; Roll out the number of WLAs installed in the first year at least twice; And roll out at least three times the number of WLAs installed in the second year.
“And assuming we decide to continue … We are applying for RBI for the license. RBI can take about six to nine months for approval … It is a story of 12 months,”
In general, the expansion of the ATM has been anemic over the past five years and grows with a compound annual growth rate (CAGR) of 1.41 percent from the end of June 2025 to 2.51,000 of 2.34,000 at the end of June 2020.
Within this, the expansion of the Banks Lauwe ATM network at 0.47 percent CAGR in the last five years to be 2.15 Lakh at the end of the June 2025 against 2.10 Lakh at the end of June 2020. WLAO’s ATM network has risen with a relatively robust 8.45 percent of 24,000.
Currently there are five WLAOS – EPS, India1 Payments, Hitachi Payment Services, Findi India and professional ran.
Published on September 7, 2025
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