What Does Brown Label ATMs Means in Banking Industry ?
Definition of Brown Label ATM’s : A new concept of ‘brown label‘ ATM, the hardware as well as lease is under the ownership of the service provider or Private Vendors, while connectivity and cash handling and management is the responsibility of the sponsor bank.
The ATM is named under the brand of the sponsor bank like SBI, Syndicate Bank etc.
With Introduction of Brown Label ATM – ATM count in the country is expected to rise from 75,000 to 1.5 lakh by 2015.
Cost To Banks : At present customer are enjoying five free-of-charge cash withdrawals at Bank’s ATMs every month but this free transaction cost around Rs 3,000 crore extra a year to settle inter-bank transaction costs.