RBI to penalise banks for non-availability of cash in ATM from October 1
The RBI has declared to impose a penalty on banks when the ATM remains out-of-cash. Any bank will be charged if the cashless situation is seen for more than 10 hours in a month. This process will be effective from October 1, 2021, onwards. Also read Devyani International IPO : Check Allotment Status
The Reserve Bank has looked at the concerns raised by the public due to the non-availability of cash in ATMs. As a result, this phenomenon helpful rule is going to be implemented.
The RBI’s circular says today, “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 Reserve Bank of India has a mandate to issue banknotes. All the banks are supposed to fulfil this mandate by dispensing banknotes to the public. Banks have decided to use their wide network of branches and ATMs to solve this purpose.
Reason for the decision
RBI reviewed the downtime of ATMs throughout India due to cashless situations. RBI found that ATM operations affected by cash-outs lead to unavoidable inconvenience to the public.
The Reserve Bank of India had now decided that the banks/White Label ATM Operators (WLAOs) will strengthen their mechanisms to monitor the availability of cash in ATMs and ensure timely replenishment to avoid cash-outs.
According to RBI, “Any non-compliance in this regard shall be viewed seriously and shall attract monetary penalty as stipulated in the ‘Scheme of Penalty for non-replenishment of ATMs.” The Scheme will be effective from October 01, 2021.
On condition for counting instances of cash-outs in an ATM, the RBI said it would come into play “when the customer is not able to withdraw cash due to non-availability of cash in a particular ATM”.
As regards the quantum of penalty, the central bank said “cash-out at any ATM of more than ten hours in a month” will attract a flat penalty of Rs 10,000 per ATM.
In the case of White Label ATMs (WLAs), the penalty would be charged to the bank.
RBI has finally listened to the voice of the people. This is expected to make the life of the public easier.