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Recently, RBI has eased business guidelines for White Label ATMs (WLAs) to enhance their viability. ATMs set up, owned and operated by non-bank entities are called white label ATMs. Non-bank entities that set up, own and operate ATMs are called "White Label ATM Operators" (WLAO). The WLAO's role is confined to acquisition of transactions of all banks' customers by establishing technical connectivity with the existing authorized, shared ATM Network Operators / Card Payment Network Operators.This will provide the functionality to WLATMs, as they are cash-starved because the banks used to give preference to the ATMs deployed by them.Until now cash Management at the WLAs was the responsibility of the Sponsor Bank.By allowing WLAO to source cash directly from RBI, will encourage more WLATM to be opened across the country, thereby leading to deepening of financial inclusion.
When was the Payment and Settlement Systems Act implemented
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Payment and settlement systems in India are used for financial transactions. They are covered by the Payment and Settlement Systems Act, 2007 (PSS Act), legislated in December 2007 and regulated by the Reserve Bank of India and the Board for Regulation and Supervision of Payment and Settlement Systems.Payment and Settlement Systems Act was implemented in the whole country on 20th December 2007.The is an An Act to provide for the regulation and supervision of payment systems in India and to designate the Reserve Bank of India as the authority for that purpose and for matters connected therewith or incidental thereto.
By: Himani Bihagra ProfileResourcesReport error
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