'Brown label' ATM concept gaining pace in India
By Ankit Sharma
May 6, 2011
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The ATM network of India is going to enter a new phase and expansion is expected to take a pace in the upcoming few years. The reason for this change has been attributed to the 'brown label' concept being introduced in the country. The concept allows banks to establish large number of ATMs in a matter of weeks.

With this model getting fully incorporated in India, the ATM count in the country is expected to rise from 75,000 to 1.5 lakh by 2015.

In a 'brown label' ATM, the hardware as well as lease is under the ownership of the service provider, 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.

Many banks, big and small both are incorporating this process in their system. Lenders like ICICI Bank, Axis Bank, Dhanlaxmi and Ratnakar Bank have adopted this system.

"While funding is not a problem for bank, installing ATMs was a time-consuming process. This begins from identifying a site, negotiating with the landlord, arranging connectivity and power and finally doing up the interiors," said Sunil R Udupa, president & CEO, Banking Business at AGS Transcat Technologies, which specializes in deploying ATMs.

"Now ensuring ATM uptime has become finance critical for us because we stand to lose money every minute the ATM is down," says Udupa.


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