Q. Consider the following statements regarding different types of ATMs in India:
1.A White Label ATM (WLA) is owned and operated by a non-bank entity, but the cash management and connectivity are provided by a sponsoring Scheduled Commercial Bank.
2.A Brown Label ATM (BLA) is where the ATM hardware and site lease are owned by a non-bank service provider, but the bank’s logo and branding are absent, making it similar to a WLA.
3.A Green Label ATM is specifically designated for facilitating agricultural transactions.
Which of the statements given above is/are correct?
Explanation:
Statement 1: Incorrect. A White Label ATM (WLA) is owned and operated by a Non-bank entity (WLA operator). The non-bank entity takes care of all operations, including cash management, in partnership with a sponsor bank. The key is that the non-bank operator is licensed by the RBI.
Statement 2: Incorrect. A Brown Label ATM (BLA) is one where the bank has outsourced the hardware and maintenance to a third party. Crucially, the BLA carries the bank’s name and logo (the sponsor bank) and the cash management is still the bank’s responsibility, unlike a WLA.
Statement 3: Correct. Different colors have been unofficially or officially associated with various functions. Green Label ATMs are specifically intended for transactions related to agriculture.
