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Banking & Financial AwarenessMediumAsked in: RRB JE · 1 Sept 2019, Shift 1

Automated Teller Machines (ATMs) set up, owned and operated by non-bank entities are called-

  1. A.Yellow Label ATMs
  2. B.Black Label ATMs
  3. C.White Label ATMs
  4. D.Grey Label ATMs

Correct answer

C. White Label ATMs

Explanation

The correct answer is C, White Label ATMs. An ATM set up, owned and operated by a non-bank company registered under the Companies Act is called a white label ATM, because it carries no bank's logo. The Reserve Bank allowed them in 2012 under the Payment and Settlement Systems Act to spread cash access into small towns and villages, and the first one in India was opened by Tata Communications Payment Solutions under the Indicash brand. The cash in the machine and the customer's account still belong to a sponsor bank, while the non-bank operator runs the machine and earns a fee from the banks. A brown label ATM, by contrast, is one whose hardware is owned by a service provider while a bank holds the licence and supplies the cash. A, B and D are wrong because yellow, black and grey label ATMs are not categories the Reserve Bank recognises. Exam tip: white label means non-bank owned; brown label means bank licensed, outsourced hardware.

Practice Questions

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Q2.Banking & Financial AwarenessAsked in: CDS · CDS-I 2018, GKHard

Which of the following statements about the India Post Payments Bank (IPPB) is/are correct? 1. It has been incorporated as a Public Limited Company. 2. It started its operation by establishing two pilot branches at Hyderabad and Varanasi. Select the correct answer using the code given below.

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: A. 1 only

IPPB was incorporated as a public limited company, but its two pilot branches opened at Raipur and Ranchi, not at Hyderabad and Varanasi.

Q3.Banking & Financial AwarenessAsked in: UPSC Civil Services · CSE Prelims 2017, GS Paper IEasy

Consider the following statements : 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct ?

  1. A.1 only
  2. B.2 only
  3. C.Both 1 and 2
  4. D.Neither 1 nor 2
Show answer
Correct answer: C. Both 1 and 2

The National Payments Corporation of India was set up in 2008 as the umbrella body for retail payments in the country, on the initiative of the Reserve Bank of India and the Indian Banks' Association, under the Payment and Settlement Systems Act, 2007.

Q4.Banking & Financial AwarenessAsked in: UPSC Civil Services · CSE Prelims 2026, GS Paper IHard

Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India : 1. NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself. 4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs. Which of the statements given above is/are correct ?

  1. A.1 and 4
  2. B.1, 2 and 3
  3. C.4 only
  4. D.2, 3 and 4
Show answer
Correct answer: A. 1 and 4

These are two of the three ways the RBI itself says an NBFC differs from a bank. An NBFC lends and invests like a bank, but it cannot accept demand deposits such as savings or current accounts, so statement 1 is correct.