Professional Documents
Culture Documents
Jyotiranjan Hota
Article Associate Professor and Area Chairperson of Information Systems
wing at KIIT School of management, Bhubaneswar
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
technology solutions to connect ATMs by
service providers (Table 2).
Fig. 1: No. of ATMs, 2006 to 2016
(Source: Global ATM Market and Forecasts to 2016 (Retail Banking Research)) White Level ATMs
In case of White Level ATMs, non banking
major focus on nancial inclusion, which Brown Level ATMs entities are allowed to set up, own, and
means ATMs now have a wider reach in In case of brown level ATMs, the hardware operate ATM machines. As per RBI
rural and remote corners of the country. and the lease is under the ownership Guidelines, minimum net worth necessary
There is also a huge demand from the of the service provider. However, for non banking entities to set up ATM
urban population who are looking for the connectivity, cash handling, and services should be minimum of 100
instant services, alongside seeking to management are the duty of the sponsor crores. These WLAs (White level ATMs
avail more value-based features[1]. As bank[2]. The ATM is under the brand and can provide services to all customers of
per RBI, for ATM industry, India is a huge logo of the sponsor bank. This model is all banks. WLA operators are acquirer
market. It is a place with 1.2 billion people, about a shared network, which results for all transactions at the WLAs, and earn
where 40% of them were unbanked. ICICI in drastically cutting costs within banks. fees correspondingly. WLA operators
Bank general manager OP Srivastava These ATMs have two major advantages. would be permitted to earn extra revenue
commented: "When we saw a man in Firstly, the capital investment is undertaken through advertisement at ATM counter,
a dhoti in a remote town in South India by the ATM vendors. So, banks need not and by offering value added services.
withdraw money from an ATM, tuck it in lock their funds in fast depreciating assets. As per RBI, the advertisements placed
the folds and ride away on his cycle, we Secondly, vendors receive a fee from bank on such ATMs would be subjected to
were truly inspired by the ATM growth in for each transaction whose ATM card Advertising Standard Council of India
the country." As per the ATM Statistics is used. There is an incentive to ensure (ASCI) codes and other regulations.The
computed by Reserve Bank of India, total efficiency of the usage. Another advantage operator will have one sponsor bank. This
number of onsite and offsite ATMs of all is that the speed of ATM deployment bank will serve as the settlement bank
Indian Banks are 100042 by July 2012. is increased once the brown level ATM for all the transactions at the WLAs.The
maintenance and servicing shall be the
responsibility of the operator. Settlement
174,988 of all the transactions at the ATMs, shall be
G: 24% 141,465
done only in the books of the sponsor bank
CAR through the ATM Network with whom the
114,364 operator has established connectivitys.
92,455 Cash Management at the WLAs is the
9% responsibility of the sponsor bank[4]. As
CARG: 2
74,743
60,153 per RBI, the sponsor bank can tie up with
34,789
43,651 other banks for loading and reconciliation
21,509 27,088 of cash at WLAs, at locations where the
16,750
sponsor bank does not have a premise.
Conclusion and Future Directions
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
There is a huge opportunity for growth of
Fig. 2 The number of ATM's in India is growing at a brisk pace...
(Source: Edelweiss IB Estimates; Assumed a 24% growth rate for the period 2012 - 2015)
ATM market in India. The future will see
multi vendor ATM popularity, which will
No of ATMs
Company Name Service Offerings Key Tie Ups
serviced
SBI, Axis Bank, HDFC Bank,
NCR Corporation ATM manufacturing, ATM Management n.a.
Manufacturer
Canara Bank
ATM
provide personalized features and a user a common man. Banks are trying to shift [3] Edelweiss. (2012). Indian Payment
friendly interface. ATM will be a popular slowly from multi vendor to multi channel Industry in 2012. Available at http://
Public Technology. Original equipment integration, so as to get a complete picture tsi.swishdesign.com.au/wp-content/
manufacturers and vendors will get of the activities of customers. uploads/2011/08/Indian-Payment-
ample scope for handling ATM machines. Industry-2012.pdf fetched on
References
Modern ATMs are now capable of 11.09.2012.
[1] Aritcles-place. (July, 2012). Brown
personalized branding, CRM applications, [4] Firstpost. (Feb. 2012). RBI issues
Level ATM-An Introduction, available
integrated fraud alert, customer guidelines for White Label ATMs
at http://www.articles-place.com/
notications, and exible services. Though owned by non-banks, available at
brown-label-atm-an-introduction/
ATM industry is growing rapidly, there are http://www.firstpost.com/fwire/
fetched on 01.10.2012.
many challenges related to security issues business-fwire/rbi-issues-draft-
[2] Bagchi, S (2012). The Indian ATM
of the software, increase of rental costs by norms-on-white-label-atms-owned-
Industry is getting Smarter, available
the day in major cities, housekeeping, and by-non-banks-213549.html fetched
at http://www.cxotoday.com/story/
replenishment of cash. Few banks have on 29.09.2012. n
the-indian-atm-industry-is-getting-
introduced biometric ATMs in rural India,
smarter/fetched on 08.09.2012.
which are quite secure and easy to use by
Prof. Jyotiranjan Hota, is an Associate Professor and Area Chairperson of Information Systems wing at KIIT
School of management, Bhubaneswar. He is a BE in computer science from NIT Rourkela and PGDBM from
About the Author
Xavier Institute of Management, Bhubaneswar. His research interest lies in Banking technologies, Analytics,
and ERP. He has published several papers in many Journals and Conferences in India and abroad. He is a
member of Computer Society of India, Odisha IT Society, IEEE, and Indian Science Congress Association. He
has discharged the role of Publicity Chair, Program Committee member, Session Chair, and Reviewer of many
International Conferences in India and abroad.