Mumbai: Worried about the inconvenience caused by the public because of the no average of cash at the ATM, the reserve bank has decided to punish the bank for failure to recharge currency notes on the machine.
The RBI will begin to force a penalty to the bank if the ATM remains outside of cash for a period of 10 hours a month from October 1, 2021, and so on.
“The penalty scheme for non-charging ATM has been formulated to ensure that enough cash is available to the public through ATMs,” RBI said in a circle.
Reserve Bank of India has a mandate to publish banknotes and banks fulfill this mandate by issuing banknotes to the public through their broad branch and ATM network.
In this connection, he said the ATM downtime review because the cash-out was carried out and observed that ATM operations that were influenced by cash caused cash inaccurately and caused discomfort to be avoided to community members.
Therefore, it has been decided that the Bank / White ATM Label operator (WLAOS) will strengthen their system / mechanism to monitor the availability of cash in the ATM and ensure timely charging to avoid cash-out, the central bank said.
“Every non-compliance in this case will be taken seriously and will withdraw monetary punishment as stipulated in the ‘penalty scheme for non-charging ATMs’,” RBI said.
This scheme will take effect from October 1, 2021.
With the conditions for calculating the cash-out example at the ATM, RBI said it will play a role “when customers cannot withdraw cash because there is no cash availability at a particular ATM”.
Regarding the quantum of penalties, the central bank said “cash-out at an ATM every out of ten hours a month” will attract a flat penalty of Rs 10,000 per ATM.
In the case of a white label (WLAS), a penalty will be charged to the bank, which meets certain WLA cash requirements.
The bank, maybe, at its discretion, restoring the sentence from WLA operators, he added.
At the end of June 2021, there were 2,13,766 ATMs from different banks in this country.
RBI to punish a bank for non-availability of cash at an ATM
