RBI to impose monetary charges on banks if ATMs run out of cash from October 1

RBI to impose monetary charges on banks if ATMs run out of cash from October 1

• The Reserve Bank of India (RBI) has announced the launch of the ‘Scheme of Penalty for non-replenishment of ATMs’, as per which it will impose monetary penalties on ATMs/WLAs that run out of cash.
• The scheme shall come into effect from October, 01, 2021.
• Quantum of Penalty
  • In the case where any of the ATM is cash-out for more than 10 hours in a month, a penalty of Rs. 10,000 per ATM will be levied.
  • For white label ATMs, the penalty would be charged to the bank which is meeting the cash requirement of that particular white label ATM.
• RBI has directed all the banks/ White Label ATM Operators (WLAOs) to strengthen their systems/ mechanisms to monitor availability of cash in ATMs and ensure timely replenishment to avoid cash-outs and hence monetary penalty.

Source: RBI

Points to Remember:

1. The Scheme of Penalty for non-replenishment of ATMs will come into effect from? October 01, 2021
2. What amount of monetary charges will be levied on ATMs in case they are cash-out for more than 10 hours in a month?