From the 1st of October 2021, Indian banks would be fined for non availability of money in automated teller machines (ATMs) in India.

On the 10th of August, the Reserve Bank of India (RBI) announced to levy monetary charges on banks for running out of cash in ATMs.

The RBI released a statement regarding the same, which read, “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.” The statement further added, “Therefore, it has been decided that the banks/White Label ATM Operators (WLAOs) shall strengthen their systems/ mechanisms to monitor availability of cash in ATMs and ensure timely replenishment to avoid cash-outs. Any non-compliance in this regard shall be viewed seriously and shall attract a monetary penalty.”

The penalty would be fined for white label ATMs, which are owned and operated by non banking firms on a contract basis. In this scenario, a fine would be paid by the bank, which is entitled to provide cash to the firm (non banking firm, responsible for the functioning of the ATM.) The RBI said, “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.”

The major change in functioning of ATMs by banks has been taken into account, considering the daily issues of cashless ATMs and ensuring free flow of cash without any difficulties.

Under this penalty scheme, the banks would have to pay a fine of Rs. 10,000 each per ATM if it runs out of cash for more than 10 hours.

According to sources, there are 2,13,766 ATMs in India under the jurisdiction of various banks.

Stay tuned for further updates. .

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