Nation

Banks to pay penalty if ATMs run out of cash; check RBI’s new guideline

RBI observed that ATM operations affected by cash-outs lead to non-availability of cash and cause avoidable inconvenience to the members of the public

By Rajan Nath -- August 11, 2021 2:23 pm -- Updated:August 11, 2021 2:28 pm

In a major relief to consumers in need of cash from ATMs, the Reserve Bank of India (RBI) has decided to levy monetary charges on ATMs that run out of cash, starting October 1, 2021.

"A review of downtime of ATMs due to cash-outs was undertaken and it was observed that ATM operations affected by cash-outs lead to non-availability of cash and cause avoidable inconvenience to the members of the public," RBI said in a statement.

Also Read | Tokyo Olympics 2020: List of medal winners, historic golden throw by Neeraj Chopra, India’s record-breaking journey

Bank ATM Card Holders Alert! Get benefits beyond cash withdrawal; Here are top 5 advantages that you must know | Zee Business

It further added, "Therefore, been decided that the banks/ White Label ATM Operators (WLAOs) shall strengthen their systems/ mechanisms to monitor the availability of cash in ATMs and ensure timely replenishment to avoid cash-outs."

Also Read | Lok Sabha adjourned sine die bringing an end to Monsoon Session 2021

ATM industry: ATM industry seeks lower GST rate, stimulus to address COVID-19 challenges - The Economic Times

"Any non-compliance in this regard shall be viewed seriously and shall attract a monetary penalty," it added.

Launching the 'Scheme of Penalty for non-replenishment of ATMs', the Reserve Bank of India said that a penalty of Rs 10,000 per ATM will be levied if ATM will run out of cash for more than 10 hours in a month.

ATM में पैसे न हों तो बैंकों को भरना होगा जुर्माना, पढ़िए RBI का नया निर्देश | RBI new rule: banks will give fine if atm run out of cash know RBI

“In the case of white label ATMs, the penalty would be charged to the bank which is meeting the cash requirement of that particular white label ATM. The bank, may, at its discretion, recover the penalty from the white label ATM operator", RBI said.

The Scheme of Penalty will be administered by the issue departments of the regional offices of the bank, the central bank stated, adding that the competent authority to impose penalty will be the Officer-in-Charge of the issue department of the regional office under whose jurisdiction the ATMs are located.

-PTC News

  • Share