ATM i.e. Automated Teller Machine is an electronic telecommunication device that enables the customers of financial institutions to carry out certain functions like cash withdrawal, depositing money, transferring funds, getting account statement and various other function without any interaction with bank staff.
Generally, the ATMs are categorised as offsite and onsite ATMs. Onsite ATMs are those which are installed within the bank branch while the offsite ATMs are those which are not installed in a branch but installed on railway stations, shopping mall, airports, bus stands, in crowded markets, universities and many other places. This was the general classification, but in today’s world we have many other types of ATM machines which are elaborated below one by one, as:
White Label ATM
In 2013, Reserve Bank of India had issued the licence to non-banking entities to operate ATMs under the Payment and Settlement Act, 2007. The reason behind this was to increase the number of ATM machines in the country which ultimately leads to more financial inclusion.
White label ATMs are owned and operated by non-banking entities while the cash is provided by the sponsor bank. The logo on these ATM machines is of the entity which owns not of the sponsor bank. Any non-bank entity with a minimum worth of 100 crore rupees can apply for white label ATM.
Some of the white label ATMs are Muthoot Finance, Vakrangee Software, Prizm Payments, AGS etc while Tata Communications Payments Solutions Limited is first such entity to get a licence from RBI to start a white label ATM. They have started their white label ATMs under the brand name Indicash.
Brown Label ATM
When a bank outsources ATM operations to any third entity, these are called brown label ATMs. The RBI doesn’t provide any separate licence for such entities. In the case of Brown Label ATM, the ATM machine is owned and operated by the private entity while cash is provided by the bank which outsources it. The brand name of the bank will also be displayed on ATM in this case.
Green Label ATM
These are used for Agricultural transactions.
Orange Label ATM
These are used for transacting shares.
Yellow Label ATM
These are used for e-commerce.
Pink Label ATM
These are used for women banking.