Union Cabinet has improved FDI norms in white label ATMs. Consider the following statements in this regard-
A.Union Cabinet approved 100 percent FDI in white label ATMs through FIPB route.
B. White label ATMs are those that are being set up by non-bank entities.
C. The change in the policy guidelines is primarily aimed at extending the financial inclusion principal even to the Tier III to VI cities across the country.
Which of the statements given above is/are correct?
Union Cabinet has improved FDI norms in white label ATMs. Consider the following statements in this regard-
A.Union Cabinet approved 100 percent FDI in white label ATMs through FIPB route.
B. White label ATMs are those that are being set up by non-bank entities.
C. The change in the policy guidelines is primarily aimed at extending the financial inclusion principal even to the Tier III to VI cities across the country.
Which of the statements given above is/are correct?
The correct option is C B and C only
Initially, RBI did not permit White label ATMs, and Banks wanted to reduce the operational cost, so they came up Brown Label ATM (outsourcing) system.
Why do we need White Label ATM?
1. ATMs offer convenience to customer (Because he doesn’t need to visit Bank branch every time). ATMs are open 24/7, and even on holidays.
2. Convenience to bank, because they don’t have to keep large staff/office (compared to a system without ATMs). It reduces their cost of branch-operation.
Union Cabinet approved 100 percent FDI in white label ATMs through automatic route. The extended reach of ATMs will allow beneficiaries of the Pradhan Mantri Jan Dhan Yojana to avail a wide variety of banking services like accessing their accounts for dispensing cash and non-financial services without the need for actually visiting their bank branch. The change in the policy guidelines is primarily aimed at extending the financial inclusion principal even to the Tier III to VI cities across the country.
Any non-bank entity intending to set up WLAs should have a minimum net worth of 100 crore rupees as per the latest financial year's audited balance sheet, which is to be maintained at all times.
B and C only
Initially, RBI did not permit White label ATMs, and Banks wanted to reduce the operational cost, so they came up Brown Label ATM (outsourcing) system.
Why do we need White Label ATM?
1. ATMs offer convenience to customer (Because he doesn’t need to visit Bank branch every time). ATMs are open 24/7, and even on holidays.
2. Convenience to bank, because they don’t have to keep large staff/office (compared to a system without ATMs). It reduces their cost of branch-operation.
Union Cabinet approved 100 percent FDI in white label ATMs through automatic route. The extended reach of ATMs will allow beneficiaries of the Pradhan Mantri Jan Dhan Yojana to avail a wide variety of banking services like accessing their accounts for dispensing cash and non-financial services without the need for actually visiting their bank branch. The change in the policy guidelines is primarily aimed at extending the financial inclusion principal even to the Tier III to VI cities across the country.
Any non-bank entity intending to set up WLAs should have a minimum net worth of 100 crore rupees as per the latest financial year's audited balance sheet, which is to be maintained at all times.
