24.5 C
Friday, July 19, 2024

Popular Articles

October 1: RBI to penalize for non-availability of cash in ATMs

The Reserve Bank, concerned about the annoyance given to the public by the lack of cash in ATMs, has decided to penalize banks for failing to immediately refill currency notes in such machines. From October 1, 2021, forward, the RBI will begin levying penalties on banks if ATMs are short of cash for a total of 10 hours in a month. As per the RBI, the Scheme of Penalty for Non-Replenishment of ATMs was created to guarantee that adequate cash is available to people through ATMs.

- Advertisement -

The Reserve Bank of India has a mission to print banknotes, which the banks are carrying out by dispensing banknotes to the general public through their extensive network of branches and ATMs. In this regard, it was noted that an assessment of ATM downtime due to cash-outs was conducted, and it was discovered that ATM operations affected by cash-outs result in the non-availability of cash, causing needless discomfort to the general population.

As a result, the central bank has determined that banks and White Label ATM Operators (WLAOs) should improve their systems and processes to monitor cash availability in ATMs and guarantee prompt replenishment to minimize cash-outs. Any non-compliance in this respect will be severely punished, and a monetary penalty will be imposed.

Following the Scheme of Penalty for Non-Replenishment of ATMs. As per the Reserve Bank of India. From October 1, 2021, the scheme will be in force. The RBI stated that the criteria for counting occurrences of cash-outs at an ATM would come into play when a client is unable to withdraw cash owing to a lack of currency at a particular ATM. The central bank noted that every cash-out at any ATM for more than ten hours in a month will be subject to a fixed penalty of Rs 10,000 per ATM. The penalty would be levied on the bank that is satisfying the cash requirements of that particular WLA in the event of White Label ATMs (WLAs). The bank may, at its discretion, seek reimbursement from the WLA operator for the penalty.

- Advertisement -


Please enter your comment!
Please enter your name here


Recent Articles