White label ATMs can accept international credit/debit cards, says RBI
Updated: Dec 06, 2014 12:17:48pm
Mumbai, Dec 6 (KNN) Reserve Bank of India has decided to allow White Label ATMs which are operated by non-bank entities to accept international credit/debit/prepaid cards, based on review of operations and owing to representations received from various stakeholders.
The apex bank, in notification issued yesterday said “the WLA operators (WLAO) have to ensure that they have established technical connectivity with the respective card network operators either directly or through their sponsor banks.”
“However, in the case of cards issued under any other card scheme, the routing and settlement should take place based on the bilateral arrangement put in place by the existing authorized networks for such purpose,” it said.
The country’s central bank will also permit the facility of Dynamic Currency Conversion (DCC) for the use of international cards at WLAs if the operator so decides to implement the DCC facility.
“The currency conversion rate will only be obtained from authorised dealer bank. WLAO will be restricted to converting the amount requested by the international cardholder (based on the DCC option selected by him) to his home currency using a Base Exchange Rate provided by the AD bank,” it said.
In addition, RBI will enable delinking cash supply from that of sponsor bank arrangements. WLAO may now tie up with other commercial banks for cash supply at WLAs.
“While the cash would be owned by the WLAO, the responsibility of ensuring the quality and genuineness of cash loaded at such WLAs would be that of the cash supplier bank. A suitable Service Level Agreements (SLA) may be drawn up between the WLAO and the cash supplier bank for adequate supply of genuine and good quality notes,” the notification said. (KNN/ES)
The apex bank, in notification issued yesterday said “the WLA operators (WLAO) have to ensure that they have established technical connectivity with the respective card network operators either directly or through their sponsor banks.”
“However, in the case of cards issued under any other card scheme, the routing and settlement should take place based on the bilateral arrangement put in place by the existing authorized networks for such purpose,” it said.
The country’s central bank will also permit the facility of Dynamic Currency Conversion (DCC) for the use of international cards at WLAs if the operator so decides to implement the DCC facility.
“The currency conversion rate will only be obtained from authorised dealer bank. WLAO will be restricted to converting the amount requested by the international cardholder (based on the DCC option selected by him) to his home currency using a Base Exchange Rate provided by the AD bank,” it said.
In addition, RBI will enable delinking cash supply from that of sponsor bank arrangements. WLAO may now tie up with other commercial banks for cash supply at WLAs.
“While the cash would be owned by the WLAO, the responsibility of ensuring the quality and genuineness of cash loaded at such WLAs would be that of the cash supplier bank. A suitable Service Level Agreements (SLA) may be drawn up between the WLAO and the cash supplier bank for adequate supply of genuine and good quality notes,” the notification said. (KNN/ES)
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