White Label ATMs can source cash from retail outlets: RBI

Moneycontrol BureauThe Reserve Bank of India (RBI) said that White Label ATM operators (WLAOs) can source cash from retail outlets. This is due to the fact that WLAOS are facing difficulties in sourcing cash from sponsor banks due to the demonetisation drive.From November 8, existing Rs 500 and Rs 1000 bank notes were declared no longer legal tender from the midnight of that day. “In order to facilitate cash availability for WLAOs, it has been decided to allow them to source cash from retail outlets,” said RBI.The banking regulator said that the WLAOs will be solely responsible for the quality and genuineness of currency notes dispensed through their ATMs. Only ATM fit notes can be used for this purpose. Further, RBI said that WLAOs can enter into bilateral arrangement with retail outlets from where they desire to source cash based on their board approved policy. Liability and disputes, if any, arising out of such arrangements will be the responsibility of WLAOs and they will be responsible for resolving customer disputes. RBI also said that 60 percent of the cash sourced using such arrangement(s) will be dispensed through White Label ATMs located in rural and semi-urban areas. This comes into effect from today.