Penalties will be levied for non-availability of cash for more than 10 hours
Banks will be more vigilant about making money available at ATMs
News Inside/ Bureau: 11 August 2021
The Reserve Bank of India has decided to penalize the bank for running out of cash at ATMs. The arrangement will start from October 1. The central bank has taken this step to alleviate the inconvenience caused to the people due to the non-availability of cash in ATMs. The concerned bank will be fined Rs 10,000 for not depositing money in the ATM on time. The RBI will penalize the banks concerned for not keeping cash in ATMs for more than 10 hours in a single month. This arrangement will come into effect from October 1, 2021. The central bank said in a circular that the purpose of imposing fines for not depositing cash in ATMs is to ensure that there is sufficient money available in these machines for the convenience of the people. The Reserve Bank is responsible for issuing notes, while banks are responsible for making money available to the public through its extensive network of branches and ATMs. The central bank said the decision would strengthen the bank’s cash availability system at ATMs and ensure that cash was dispensed at ATMs on time so as not to bother people. The RBI said that non-compliance with the rules in this regard would be taken seriously and financial penalties would be imposed. This provision has been made in the penalty scheme for not depositing cash in ATMs. The scheme will be implemented from October 1, 2021. Regarding the amount of penalty, the central bank said that if there is no cash in any ATM for more than 10 hours in a month, a penalty of Rs 10,000 per ATM will be levied. At on end of June 2021, there were 2,13,766 ATMs of various banks in the country.