Tuesday, 19 October 2021

From October banks to pay charges if no cash in ATM's

From October banks to pay charges if no cash in ATM's

The charges will be imposing on ATMs from October 1, RBI said

A penalty will impose of 10,000 ₹ per ATM will be set in the event of a running out of cash situation for more than 10 hours in a month,

In what comes as a significant relief to consumers in need of cash from ATMs, the Reserve Bank of India decided to levy monetary charges on ATMs that run out of money, starting Oct 1, 21.

RBI said in a statement.

"A review of downtime of ATMs due running out of cash was taken on and it was noticed that ATM operations affected by cash-outs lead to non-availability of cash and cause avoidable inconvenience to the members of the public,"

It further statement said

"Therefore, been decided that the banks and White Label ATM Operators (WLAOs) to build up the systems and mechanisms to monitor the availability of cash in ATMs and ensure timely refill to avoid running out of cash. Any non-compliance in regard shall be viewed on serious note and shall attract fines."

'Scheme of Penalty for non-refilling of ATMs,' the central bank said that penalty of ₹10,000 per ATM would be imposed in the event of a running out of cash condition in one month for not more than 10 hours.

RBI said.

"In the event of white label ATMs, the penalty will be impose on bank which is meeting cash demand for particular white label ATM. The bank, may, at its caution, recover the penalty from the white label ATM operator".

From October banks to pay charge if no cash in ATMs 1getty image

Read More: Fixed deposit rates revised: YES Bank

RBI further said

Banks should submit a system-generated statement on the downtime of ATMs due to non - refilling out of cash to the 'Issue Department' of RBI under whose jurisdiction these ATMs are locating.

In the case of WLAOs, RBI stated that the banks meeting their cash requirements should equip a different statement on behalf of WLAOs on cash-out of such ATMs due to non-replenishment of cash.

Such information will be submitting every month within five days of the following month, i.e., the first such statement for October 2021 shall be presenting to the Issue Department on or before November 5, 2021.

Appeal against the decision of Competent Authority, if required, may be made by banks or WLAOs to Regional Director or Officer-in-Charge of Regional Office concern, within one month from the date of imposing of penalty.

Follow Us

Popular Post