ATM New Rule: Banks Have To Pay Heavy Penalty If ATMs Run Out Of Cash

ATM New Rule: Banks Have To Pay Heavy Penalty If ATMs Run Out Of Cash

Highlights:

  • According to the RBI, the charges will be implemented on ATMs from October 1st.
  • It further says that a penalty of ₹10,000 per ATM will be imposed in the event of a cash-out situation for more than 10 hours in a month

The Reserve Bank of India (RBI) said on Tuesday that, it will levy monetary costs on ATMs that run out of cash, starting October 1, 2021, which will come as a huge relief to people in need of cash from ATMs.

“A review of downtime of ATMs due to cash-outs was undertaken and it was observed that ATM operations affected by cash-outs lead to non-availability of cash and cause avoidable inconvenience to the members of the public,” the RBI said in a statement.

It went on to say, “As a result, banks and White Label ATM Operators (WLAOs) have agreed to improve their systems and methods for monitoring cash availability in ATMs and ensuring timely replenishment to avoid cash-outs. Noncompliance in this aspect will be taken seriously and will result in a monetary penalty.”

Also Read: Tokyo Olympics 2020’s Golden Boy Neeraj Chopra Rope By RBI For Banking Fraud Awareness Campaign

The central bank announced the ‘Scheme of Penalty for Non-Replenishment of ATMs,’ which imposes a penalty of ₹10,000 per ATM in the event of a cash-out situation lasting more than 10 hours in a month.

“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,” the RBI stated.

The RBI further stated that banks must provide a system-generated statement on ATM downtime owing to non-replenishment of cash to the RBI’s ‘Issue Department,’ which regulates the ATMs.

When cash is withdrawn out of WLAO ATMs owing to cash shortages, the RBI stipulated that banks that are meeting their cash requirements must issue a separate statement on behalf of WLAOs. Such statements must be filed to the Issue Department concerned within five days of the next month, i.e., the first such statement for the month of October 2021 must be submitted on or before November 5, 2021.

The central bank went on say, “If necessary, banks/WLAOs may appeal the decision of the Competent Authority to the Regional Director/Officer-in-Charge of the Regional Office concerned within one month of the imposition of the penalty. Because the Scheme’s goal is to ensure timely ATM replenishment, appeals will be accepted only in circumstances where legitimate causes outside the control of the bank/WLAOs prevail, such as a state/administrative lockdown, a strike, etc.”

Avatar

Swastika Dubey

Swastika Dubey is a content writer who has a keen interest in politics, fashion, and lifestyle. She is a post-graduate in Economics and loves to listen to classic old Hindi songs and travel to new places in her leisure time. Her writing is well researched, covering important aspects and core of the topic covering crucial points.

Read Previous

PM Modi’s NaMo App Seeks Public Feedback On Govt Over Various Issues In 5 Poll-Bound States

Read Next

ISRO Fails To Place Its Earth Observation Satellite EOS-3 Into Orbit Due To Technical Anomaly

Leave a Reply

Your email address will not be published. Required fields are marked *