| Consider the following statements: |
| I. White Label ATMs are ATMs set up, owned and operated by non-bank entities incorporated in India under the Companies Act, 1956. |
| II. Only banks are permitted to set up automated teller machines (ATMs) as extended delivery channels. |
A) Only I is correct
B) Both are correct
C) Only II is correct
D) Both are incorrect
Correct Answer: B
Solution :
[b] White Label ATMs: The Reserve Bank recently allowed nonbanking companies to set up white-label ATMs in the country. Most automated teller machines (ATMs), or machines that dispense cash, are owned by banks. But ones that are owned and operated by non-banking companies are called while-label ATMs (WLAs). They function just the same way as any other bank-run ATM. So far, banks have deployed almost 87,000 ATMs across India. Although they are free to put up ATMs anywhere, there is still a huge scope for setting up more ATMs in non-urban - and non-metro cities. So, the RBI has allowed non-banking companies to deploy white-label ATMs to expand their reach in rural India. However, non-banking companies entering this market will have to maintain a certain ATM ratio between rural and urban India. The RBI is yet to prescribe the ratio.
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