Access to cash from RBI doesn't improve viability of ATMs, say operators

While white label ATM operators (WLAOs) were allowed to buy cash directly from the Reserve Bank of India (RBI), the industry says it does not serve the RBI’s intention of “enhancing the viability” of the ATMs.

Executives said the directive does not address the need to increase interchange rate, which is crucial to ensure the viability of these and encourage opening of more ATMs in the country. The number of ATMs has stagnated since demonetisation, shows the RBI data.

Interchange is the rate charged by the ATM operator for every transaction. It is decided by a National Payments Corporation of India (NPCI)