Banks to pay fine if there is no cash on ATMs’

In a circular to banks this week, the RBI said that they should monitor the availability of cash in ATMs and ensure that there are no cash-outs. The circular said that banks would be fined Rs 10,000 if there is a cash-out at any ATM for more than 10 hours in a month.

Beginning from October this year, the lender will have to pay a fine if the ATM fails to replenish money when required.

“The Scheme Penalty for Non- replenishment of ATMs’ has been formulated to ensure that sufficient cash is available to the public through ATMs'”. The RBI circular said.

However, it will be a great relief for the customers who need to withdraw cash from the ATMs’ but most of the time the ATMs’ ran out of cash.

While launching the ‘Scheme of Penalty for non-replenishment of ATMs’, the central bank said that a penalty of Rs 10,000 per ATM will be levied in the event of a cash-out situation for more than 10 hours in a month.

The RBI further said that banks shall submit a system-generated statement on the downtime of ATMs due to non- replenishment of cash to the ‘Issue Department’ of RBI under whose jurisdiction these ATMs are located.

Further, to appeal against the decision of the competent authority, banks/ WLAOs will have to reach out to the regional director/officer-in-charge of the regional office concerned, within one month from the date of imposition of penalty.

 Appeals would be considered only in cases of genuine reasons beyond the control of bank/ WLAOs such as the imposition of lockdown or strike.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button