Brown Label ATM and 5 Other Amazing Types of ATMs You Didn’t Know About


Last updated on January 19, 2023

What is Brown Label ATM?

Brown label ATM (also known as BLA ATM) refers to an ATM where the machine’s money management and connectivity to financial systems are provided by a bank (known as sponsor bank) but the machine is owned by the manufacturer (known as a service provider or vendor) and offered under a lease to the bank. The ATM machine carries the branding of the bank but isn’t owned by the bank.

Brown-label ATMs are rented under the service provider’s ownership. The service provider is responsible for locating an ATM site and negotiating with the property management. The service provider must also prepare for the power supply, network framework, and interior enrichment.

The ATM system in India is anticipated to grow rapidly over the next several years due to large financial institutions that have used their inventiveness to implement the “brown label ATM” concept, which enables them to set up numerous ATM units in a few weeks. As one can see, the highlight of a brown ATM is cost sharing between the bank and the service provider.

Larger financial institutions, including Axis and ICICI Bank, as well as smaller banks, like Dhanlaxmi and RBL, are now using the “brown label ATM” concept. In fact, most ATMs in India now operate as brown label ATM as banks have shifted away from the earlier model of outright purchase of the ATM machine and bearing the cost of service. The brown-label ATM model is popular due to its cost-sharing nature which greatly benefits banks.

The brown label ATM model has emerged as a viable substitute of white label ATMs and bank-owned ATMs.

Brown Label ATM

How are costs shared in Brown ATMs?

As mentioned above, the major USP of the brown label concept is the cost savings for banks. Under the model, capital expenditure is undertaken by the service provider and banks subsequently pay the service provider on per transaction basis or through a monthly fee.

The major services for which the bank pays the service providers are cash management, network monitoring, security services and housekeeping.

The average number of transactions at an average ATM in a single day for FY2021
was 87 transactions, including financial and non-financial transactions.

Profitability analysis of Brown label ATMs in India:

Parameter Value in INR
Cost per transaction 7.7
Revenue per transaction 11.0
Profit per transaction 3.3
Number of transactions for break-even per day 70
Coverage of investment after years 3.8
Source: India ATM Market Outlook to 2026, Ken Research, August 2021

Benefits of Brown Label ATMs

The brown-label ATM concept has two major benefits. First off, because the vendor undertakes the capital expenditure, the banks do not need to lock their money away in a rapidly deteriorating asset.

Second, there is an incentive to ensure effective use because the bank that issued the card pays a charge for each transaction to the vendor. However, some of the smaller banks that do not have a sizable customer base nationwide are finding it more cost-effective to pay other banks for each transaction rather than buy their equipment.

Also read: White Label ATM – Meaning, Example, Regulations, Operators

Major Brown-Label ATM Operators

What is the Status of BLA ATMs in India?

Brown-label ATM network is anticipated to grow quickly over the next several years, given the high cost of ATMs and RBI’s rules for ATM development. There has been a noticeable change in the way banks view the ATM industry in recent years. Banks are now choosing brown-label ATMs or ATMs where the equipment and service are outsourced, as opposed to the capital intensive model followed earlier.

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Brown Label ATM

Types of ATMs based on Operation


White label ATMs are installed, owned, and run by organizations other than banks that have received RBI approval and that were formed under the Companies Act of 1956. These ATMs enable transactions from any bank, and there is no display of any specific bank’s logo.

Example: Tata Indicash, India1ATM


These ATMs are utilized for agricultural transactions.


Share transactions take place at ATMs with orange labels.


These ATMs are utilized for online shopping.


Only women are allowed to use these ATMs for banking.


In this sort of ATM, the sponsor bank provides cash management and network connectivity, while the service provider owns the ATM’s hardware and lease.

Examples: SBI, HDFC, etc.


The CD (Cash Dispenser) may be used to make cash withdrawals, see mini statements, make requests, and check balances.

Types of ATMs

These are the several types of ATMs that are available in different places and regions. They eliminate the possibility of not being able to access your money. No matter where you are or what time it is, you can withdraw cash.

Difference Between White Label ATM and Brown Label ATM

White Label ATMBrown Label ATM
A white-label ATM doesn’t have the branding and logo of the bankA brown-label has the branding and logo of the sponsor bank  
The RBI is directly involved in White-label ATMs because these operators have to separately get licensed/permission from the RBI to conduct businessThe RBI is not involved directly in brown-label ATMs because the outsourcing companies have a contractual obligation with their respective sponsor banks
White-label ATM operators have a compulsion to open a few ATMs in tier 3 to tier 6 areasBrown-label ATM operators have no such compulsion
ATMs are installed, owned, and run by NBFCs or other non-bank organizationsBrown-label ATMs are owned by the service providers


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