The Reserve Bank of India has authorised non-banks to operate “White Label ATMs’ under the provision of __________

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1. Legal mandate: The Payment and Settlement Systems Act, $2007$ provides a dedicated legal framework empowering the Reserve Bank of India to regulate, supervise and oversee payment systems and related infrastructure in the country.

2. Authorization power: Under this Act the RBI has explicit authority to designate and authorize entities to operate payment systems and payment infrastructure. This power includes setting eligibility criteria, operational standards and customer-protection norms for operators.

3. Application to White Label ATMs: White Label ATMs (WLAs) are a form of payment infrastructure for cash withdrawal and basic services. The RBI used its powers under the Payment and Settlement Systems Act, $2007$ to issue guidelines permitting non-bank entities to be authorized as WLA operators, subject to prescribed capital, technical, and operational conditions.

4. Regulatory safeguards: The Act enables RBI to impose conditions, monitor compliance, and ensure interoperability, security and consumer protection for WLAs operated by non-banks.

Therefore, the operation of White Label ATMs by non-bank entities is authorized under the Payment and Settlement Systems Act, 2007.

FINAL_ANSWER: e

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