Ministry of Finance inserts White Label ATM Operations and Conditions to FEM (Non-debt Instruments) Rules [Read Notification]

White Label ATMs (WLAs) are ATMs established, owned, and operated by non-bank entities

By Navasree A.M - On August 17, 2024 7:36 pm - 2 mins read

Ministry of Finance - White Label ATM - Operations and Conditions - FEM Rules - taxscan

The Ministry of Finance has inserted a new provision for White Label ATM Operations and its conditions to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019.

This amendment, known as the Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2024, shall come into force on the date of their publication in the Official Gazette, that is 16th August 2024.

White Label ATMs (WLAs) are ATMs established, owned, and operated by non-bank entities. These operators are granted authorization by the Reserve Bank of India (RBI) under the Payment & Settlement Systems Act, 2007, allowing them to offer ATM services independently of traditional banks.

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The rationale for permitting non-bank entities to establish White Label ATMs (WLAs) is to broaden the geographical distribution of ATMs and enhance customer service, particularly in semi-urban and rural areas.

For the amendments, the ministry has added new entries to the table, after SL. No. F.10 and the entries relating thereto in the Schedule 1 is as following:

in the table, after SL. No. F.10 and the entries relating thereto, the following SL. No. and entries shall be inserted, namely: –

SL. No. (1)	Sector/ Activity (2)	Sectoral Cap (3)	Entry Route (4)
“F 11.	White Label ATM Operations (WLAO)	100%	Automatic
	Other conditions
	(a) Any non-bank entity intending to set up White Label ATMs (WLAs) should have a minimum net worth of one hundred crore rupees as per the latest financial year’s audited balance sheet, to be maintained at all times. (b) In case the entity is also engaged in any ‘Other Financial Services’ referred to in Sl. No. F.10 above, then the foreign investment in the company setting up WLA shall also comply with the minimum capitalisation norms, if any, for foreign investments in such ‘Other Financial Services’. (c) FDI in the WLAO will be subject to the specific criteria and guidelines issued by the Reserve Bank under the Payment and Settlement Systems Act, 2007 (51 of 2007).”.