What changed
RBI removed the clause from the June 2012 circular that prohibited WLAOs and their agents from accessing cash at White Label ATMs. The change addresses operational difficulties raised by stakeholders, while maintaining the requirement that cash must come from the sponsor bank.
What it means for you
Banks and WLAOs can now streamline cash replenishment and management without the previous restriction, potentially reducing operational costs and delays. However, the sponsor bank remains responsible for ensuring cash quality and genuineness, so banks must tighten oversight of WLAO cash handling processes.
What you must do
- Update internal policies to reflect that WLAOs and their agents can now handle cash at WLAs.
- Ensure cash sourced from sponsor bank only; maintain strict quality checks on notes loaded.
- Review and amend agreements with WLAOs to clarify new cash handling responsibilities and audit requirements.
- Monitor WLAO cash operations to prevent any compromise on note genuineness or security.
Who it affects
All scheduled commercial banks including RRBs, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Authorised ATM Network Operators, Card Payment Network Operators, Authorised White Label ATM Operators
Does this circular allow WLAOs to source cash from any bank?
No. The cash must still be sourced only from the sponsor bank. The relaxation only removes the restriction on WLAO access to cash at the ATM.
Are all other guidelines from the June 2012 circular still valid?
Yes. Only the specific sentence about WLAO cash access has been withdrawn. All other instructions in the original circular remain unchanged.