On Wednesday, the Reserve Bank of India (RBI) asked banks and white label automated teller machine (ATM) operators to set up robust system that allows to monitor the availability of cash in ATMs.
This is to ensure the timely replenishment of Cash and avoid any cash-out situations because now, that would be a hole in the pocket for the Banks.
The Central Bank introduced a ‘Scheme of Penalty for Non-replenishment of ATMs’. This Scheme will be effective from October 1, 2021. In this scheme, the banks and white label ATM operators will be penalised, in the event of cash-outs beyond the permissible time limit.
“ATM operations affected by cash-outs lead to non-availability of cash and cause avoidable inconvenience to the members of the public,” the banking regulator observed and hence, the decision.
