SBP to Set Up Private ATMs

State Bank of Pakistan (SBP) has decided to allow Payment Service Providers (PSPs) to own and operate White Label ATMs or Automatic Banking Machines (ABMs) aimed at increasing banking outreach and services throughout the country.

ATM is one of the most widely used access/payment points that caters to needs of the general public.

However, the operation and maintenance of these ATMs is a big challenge for banks. Hence, White Label ATMs can catalyze the growth of offsite ATMs to bridge the gap at a faster pace.

White label ATMs are owned and operated by non-banking entities. They are usually referred to as White Label ATM Operator (WLAO). The WLAO operates their ATMs in Off-Us mode It can become a member of an ATM Switch (Payment Systems Operator- PSO) for routing and settlement of transactions while the service fee and place of installation is decided by WLAO itself.

Guidelines for WLAO

In order to encourage the growth of off-site ATMs through White Label ATMs, SBP has developed a draft of “White Label ATMs Guidelines.”

This guideline will provide a regulatory direction to prospective investors/service providers who intend to apply for In-principle approval under the Rules for Payment Systems Operators (PSOs) and Payment Service Providers (PSPs).

The WLAO are specialized entities with expertise in ATM deployment and management. They generate revenues from fees charged on ATM transactions.

The WLAO will need to fulfill certain requirements before they begin their commercial launch, including product offering, operational readiness, telecommunication connectivity, cash management, settlement of funds, pricing, dispute resolution, regulatory reporting and record retention.

WLAO shall be allowed to offer following Payment Services through White Label ATMs. However, any product offering not listed below shall require prior approval from SBP.

  1. Cash withdrawal
  2. Cash deposit
  3. Fund Transfer (IBFT)
  4. Utility Bill Payments
  5. Account statements
  6. Balance inquiry.

In order to ensure smooth operations for the facilitation of customers, the WLAO shall comply with certain requirements to attain operational readiness:

  • Obtain membership of any ATM Switch authorized under the Rules for Payment Systems Operators and Payment Service Providers under a mutually agreed term.
  • Integrate its ATM controller with ATM Switch and furnish successful UAT sign off to SBP prior to commercial launch.
  • Establish dual network connectivity with ATM Switch to ensure network redundancy.

Cash Management

With regard to cash management, WLAO will enter into an agreement with Financial Institution(s) for an adequate supply of genuine and ATM-Fit currency notes from their cash processing center(s).

However, they will have to ensure cash management and feeding of ATM fit notes under CCTV camera recording.

WLAO shall ensure adequate cash back-up arrangements to ensure availability of ATM services round the clock specifically during long weekends.

Service Charges

The WLAO, while considering the viability of its business model, may charge reasonable transaction fees from their customers or issuing banks (if banks are willing to absorb WLA transaction charges of their customers).

These charges shall be displayed at the time of initiating a transaction on ATM screen (both in Urdu and English languages). This will enable customers to know how much it will cost to make their transactions via a private ATM beforehand. The customer shall have the option to cancel the transaction in case the charges are not acceptable to him/her.

In line with its Vision 2020, SBP has taken a number of steps to increase ATM usage. The central bank is also hoping to promote the growth of ATMs and other electronic payment touch points in the country.  The move to set up private ATMs in the country is yet another step towards this direction which is widely common in different cities.

The complete draft of guidelines on White Label ATMs could be viewed here.


  • State Bank ko Chahyeh Emergency Loan Service From ATM Se Allow Kare :
    Kisi Ko Urgent At Lest 1000 Ya 500 Ki Zarorat Parh Jaye Wo Kisi Bhi ATM Se Apna CARD Insert Kar K Emergency Loan Le Sakta hai
    ( Jaise BIke Ya Car Puncher Ho Jaye Tyre Ya Tube Kharab Ho Jaye, Mobile Balance Chahyeh Ho Zaida, Kahi Kuch Kahana Peena, Kisi Ki Madad Karna Ho Etc)

    • Mohammed Raheel Jahangeer

      Yr ye kya bnDa h yr..??
      hr jGH bs chawle maarna hOta h isy sense less he bt kreGa hmysha..

      • Adnan

        Bhai apke fayde ki baat ki hai usne Allah na kare apko koi emergency pesh aye tub apko iss bande ki baat ki value pata chale… aur achi baat se hamesha agree karna chahye na k tanqeed karo.

      • Muhammad Abrar Ali

        He is right Company se Loan mill sakta to Banks kya Rs 1000 Loan ni de sakti
        By the way Good Point @AbdulWAHABAlam:disqus

        • Waisy Bhi : Yaha to Log ARBO Kha Gaye Koi Hisaab Nahi : Hum to 1000 Rupee Ki Wo Bhi Loan Ki Bat Ki hai : Thanks
          (Already advised to SBP on Email & Twitter)

          • Muhammad Abrar Ali

            Strongly Agreed
            :)

      • ZAB

        Senseless nahi baat patay ki kar gaya hai. Aur kia maloom future main implement ho jaye yeh. Good suggestion by the way Wahab.

    • Munshi

      I second that. Small loan could be lent to a person in case of emergency and that amount can be deducted automatically from that person’s checking account as soon as the funds are credited. And emergency loan service should only available to the users with active checking accounts not the dormant ones.

    • Saqi

      Credit cards isi liye hain

      • Credit Cards Lene Ki Terms & Condition to Pata hai Na ????
        Jaldi Milta Nahi : Aur Use Karo Na Karo Bill Her Month Kuch Amount Ka Ata Rahega :

        • Saqi

          Ap k ghar office hr jaga investigation hoti hoti hai. Loan b to day rhe hain. Verify na karain kia?