The Reserve Bank of India will penalise banks for a lack of cash in ATMs

Team SoOLEGAL 12 Aug 2021 3:31pm

The Reserve Bank of India will penalise banks for a lack of cash in ATMs

It is usually witnessed by people on a very frequent basis that an ATM or at times multiple ATMs run out of cash. Such a scenario has become very common. This often leads to public disturbance.

For this, a review of downtime of ATMs due to cash outs was done by the apex body, Reserve bank of India (RBI), in situations where ATM operations were affected by cash outs have lead to non-availability of cash and have caused serious inconvenience to the public.

To overcome such issues in the future, the Reserve Bank of India has directed all the banks and white label ATMs operators (WLAOs) to ensure that the ATMs do not run out of cash. All the ATMs should be monitored and ATMs should be replenished whenever there’s a shortage of cash.

Under this initiative taken by the RBI, if there’s any -non-compliance then it will lead to a penalty which will come into force from 1st of October 2021 onwards. In situations where the cash out for more than 10 hours in a month takes place, then a penalty of 10,000 will be levied.

A proper procedure has also been given by the RBI in which it mentioned that every month banks have to submit a report of cash out in an ATM and downtime within five days of every month.

This is a great initiative that has been taken by the RBI which would improve the scenarios of banking and ATMs along with keeping things hassle-free for the public.

Tagged: Reserve Bank of India   penalise banks   ATM   RBI  
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