RBI New Rule: Banks have to pay fine if ATMs run out of cash

RBI has said in a circular that cash shortage for a maximum period of 10 hours in a month is permissible in any bank's ATM.

Yogita

YogitaBy Yogita

Published on 11 Aug 2021 4:51 AM GMT

RBI New Rule: Banks have to pay fine if ATMs run out of cash
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New Delhi: Not keeping enough cash in ATMs will now cost the banks heavily. The Reserve Bank of India (RBI) has said that if a customer has to return empty-handed from an ATM due to lack of cash, then the concerned bank will be fined from October 1 this year. RBI has said in a circular that cash shortage for a maximum period of 10 hours in a month is permissible in any bank's ATM.

Penalty on ATM if run out of cash:

But if any ATM is found to be short of cash for a longer period, then the bank will have to pay a fine of Rs 10,000 per ATM. RBI says that its objective is to relieve customers from the problem of lack of cash in ATMs. RBI is responsible for issuing banknotes. At the same time, banks have the responsibility to deliver the notes to the customers through their network of ATMs across the country.

Therefore, banks and white label ATM (companies that have been given license to operate only ATMs by RBI) operators will have to keep their systems strong. They have to ensure that there is never any shortage of cash in any of the ATMs under them.

Fine of Rs 10,000 on banks: RBI

RBI will impose this penalty on the banks concerned if there is not enough cash in ATMs for more than 10 hours in a month. This arrangement will come into effect from October 1, 2021. For this, RBI has asked the bank/white label ATM operator to ensure the availability of cash in the ATM and strengthen its system. Various banks across the country had 2,13,766 ATMs as of the end of June 2021.

The Reserve Bank said that in case there is no cash in the ATM, a system generated statement will have to be given. This statement will be sent to the issue department of RBI under which ATM comes. Failure to comply with this rule will be taken seriously and fines will be imposed.

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Yogita

Yogita

She covers current News topics, keeps the audience updated with Buzz around the world.

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