RBI to penalise banks for non-availability of cash in ATMs from Oct 1

New Delhi, August 11: In the major development, the Reserve Bank of India is going to impose a heavy monetary penalty on the banks if their ATMs run out of cash from 1 October 2021. These entities have been formulated to ensure that sufficient cash is available to the public through ATMs.

 

 

 

According to the proposal, the central bank said that a penalty of Rs. 10,000 per ATM will be leveled in the event of the cash-out situation for more than 10 hours in a month. With regards to the white label ATMs, the bank that fulfills the cash requirement of that specific ATM will be being the penalty.

 

“In the case of white label ATMs, the penalty would be charged to the bank which is meeting the cash requirement of that particular white label ATM. The bank, may, at its discretion, recover the penalty from the white label ATM operator”, RBI said.

 

 

 

The RBI further said that banks shall submit a system-generated statement on the downtime of ATMs due to non- replenishment of cash to the ‘Issue Department’ of RBI under whose jurisdiction these ATMs are located.

 

“The Scheme of Penalty for non-replenishment of ATMs has been formulated to ensure that sufficient cash is available to the public through ATMs,” the RBI said in a circular.

 

The Reserve Bank of India has a mandate to issue banknotes and the banks are fulfilling this mandate by dispensing banknotes to the public through their wide network of branches and ATMs. In this connection, it said.

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